Corporate rentals: Expert insights and tips

Lorraine Dellbridge, Rentals Manager for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs and False Bay, along with Debbie Williams, Corporate Rental Specialist in key Johannesburg suburbs, share insights on renting to corporates.

Demand for corporate rentals

Cape Town: Corporate rentals have declined in 2024. Popular areas include security estates in the Southern Suburbs and upmarket areas like Bishopscourt. The CBD and Atlantic Seaboard favor modern apartments in secure buildings.

Johannesburg: Preferred areas include Sandton, Benmore, Morningside, Bryanston, Dainfern, and Waterfall Estate, near business hubs and private schools.

Types of properties

Lifestyle Estates and homes with strong security measures are top choices. Security features like CCTV, beams, and backup power are crucial, especially for freestanding properties.

Features and attributes that add value

Modern finishes, backup power systems, and water reserves are highly desirable. High-end furnished properties with pools and good security systems are in demand.

Pros and Cons

Corporate lets offer reliable rental payments and long leases but can be demanding in terms of property maintenance and auxiliary services.

Long-Term or Short-Term?

Rental durations depend on corporate contracts. Embassies usually require leases of two years or more, while corporate leases range from six months to two years.

Usual type of rental payments

Standard payments include a two-month deposit and advance rent. Some companies negotiate upfront payments for discounts.

Tenancy agreements

Landlords must ensure leases are balanced and comply with South African law. Consider consulting an attorney for customized agreements.

Furnished or Unfurnished?

Furnished properties with modern furniture and high-end finishes are preferred. Offering both furnished and unfurnished options appeals to a broader market.

Noteworthy checks and considerations

• Research rental yields in your area and factor in landlord costs such as rates, levies, and maintenance.
• Buy properties near business hubs or schools to attract corporate tenants.
• Perform comprehensive tenant vetting and ensure deposits are securely held in interest-bearing accounts.
• Work with experienced property practitioners and list your property on prominent portals like Private Property.

For more guidance, rely on property experts who specialize in corporate rentals to navigate the market effectively.