DURBAN - The developers of the R230 million Lush residential have introduced a short-term letting platform that will help the development extend its investment potential beyond the bricks and mortar.
Although not an entirely new concept, this platform is particular to Lush and its users. Unlike with Airbnb where the owner decides who can stay at the property, a dedicated intermediary body will be charge of the who, what and how.
However, the cost of renting through Lush'srental platform depends on the per unit offering as well as the owner's preference.
“The market demand for short-term letting is high, especially on the North Coast, and people are looking for ways to maximise on this opportunity,” said Clifton Smithers, Developer Representative, Lush (at Elaleni Coastal Forest Estate).
He added that the short-term letting platform is a way for people earn an extra revenue stream and they can continue to let it on an ongoing basis. However, others who invest in Lush will use it as their primary residence for most of the year and then only let it out during the high season.”
With short-term letting on KZN’s North Coast is at an all-time high and many property owners are using their property as a way to generate extra income.
According to Airbnb reports, in South Africa a typical host earned R24 633 through renting their property to local and international travellers while 66% of hosts nationally shared their primary residence with guests for an average 17 nights per year.
The KwaZulu-Natal province hosts let their space for an average of 13 nights a year which earn an income of R20 000 for the host.
Smithers continues, “The demand for short-term letting opportunities is unquestionable and, this demand is ever-growing. KZN’s North Coast is a top performing area when it comes to short-term letting for holidaymakers and out-of-towners coming to the coast during peak season".
Available opportunities at Elaleni Coastal Forest Estate have seen an average 34 percent capital growth while purchased land at Elaleni is seeing between 30 and 50 percent capital increase.
The value of property at Elaleni Coastal Forest Estate is set to increase after the Gatehouse and Clubhouses are completed, and once the first freestanding homes are established.
“Lush has been developed with a specific price point in mind geared towards investors who want to benefit from these short-term rental models" concluded Smithers.