In the suburbs of East London, there is reasonable demand for rental properties, with the sweet spot being those priced between R10 000 and R35 000 per month.
Across the board, there are a substantial amount of tenant applications being declined due to low affordability. Other reasons include unfavourable credit checks as a result of judgement or defaults on the applicant’s profile, as well as poor payment history on various accounts held by the applicant.
In suburbs such as , Abbotsford, Baysville, Beacon Bay, Bonnie Doon, Bunkershill, Gonubie, Selborne , Vincent Heights, 70% of rental deals, from a value point of view are priced between R10 000 to R35 000 per month, which provides a range of properties to prospective tenant.
She explains that there is a selection of stock to choose from, with tenants signing lease agreements of 12 months, while others are happy to sign 24- month lease agreements.
“The rental market in general has been under pressure, reflective of the slow growth in the economy, as a result, the lower end of the market - those properties priced between R4 500 and R9 500, in certain areas, Baysville, Greenfields, Mdanstane, Quigney, Winterstrand, Woodleigh are seeing great demand
