Durban development introduces short-term rental platform
South Africa: The developers of the Lush residential in Durban have introduced a short-term rental platform that will allow the 230 million rand development to extend its investment potential.
The platform differs from Airbnb in the sense that a dedicated intermediary body will decide not only who can stay at the listed property but also the type of property and their length of stay.
However, the cost of renting accommodation through Lush’s rental platform depends on the per-unit offering as well as the owner’s preference.
Clifton Smithers, a Developer Representative for Lush at Elaleni Coastal Forest Estate, said: “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.”
He added the short-term letting platform was a means of earning an extra revenue stream and hosts would be able to continue leasing the accommodation on an ongoing basis. However, others investing in Lush will use it as their primary residence for most of the year and only let it out during the peak season.
With short-term letting on KwaZulu-Natal’s North Coast – where Durban is situated – at an all-time high, many property owners are generating extra income by renting out their property.
Airbnb reported that a typical South African host earned over 24,000 rand through renting their property to local and international travellers while 66% of hosts around the country shared their primary residence with guests for an average of 17 nights per year.
In KwaZulu-Natal province, hosts let their property for an average of 13 nights a year which earn an income of 20,000 rand for the host.
Smithers said: “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 in Durban have seen an average 34 per cent capital growth while purchased land there is experiencing a capital increase of between 30 and 50 per cent.
The value of property on the Durban estate is set to increase after the completion of the Gatehouse and Clubhouses and then as soon as 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,” added Smithers.