How landlords could cater to multi-generational tenants
Category Advice
Many South African households accommodate varied living arrangements. Parents, grandparents, aunts and uncles, cousins, and even adult children make up some of the varied dynamics of many South African households.
Landlords could tap into this market if they consider how their properties could serve these multigenerational families.
While some multi-generational living situations might be by choice, others are by necessity; but, there are many benefits of having extended families living under one roof, with emotional and financial support being two of the main benefits.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa says that landlords would be wise to consider this fast-growing market and find ways to accommodate multiple living / dual occupancy within their property investment portfolio.
"Not all types of properties can accommodate larger family dynamics, but if the home offers the space or the possibility for some affordable conversions or extensions, the demand for multi-living property could have the potential to attract more tenants and is likely to lead to higher rental prices," says Goslett.
He adds that semi-detached and garage conversions are some of the more popular options, but if your property allows for it, adding a separate second dwelling with its own entrance could potentially mean a whole other income stream and it will add to the resale value of the home.
When it comes to renovating a rental property to accommodate large families, Goslett recommends installing hardwearing fittings and fixtures to minimise the risk of damage and general wear and tear.
As a final recommendation, Goslett recommends involving an experienced rental agent to manage the property on your behalf.
"Leasing to a large, extended family household can become more complicated, especially if there is any uncertainty around which adult is responsible for making sure that the rent is paid in full and on time every month.
"An experienced rental agent will know how to structure the lease agreement and put all the necessary safeguards in place to minimise any risks associated with this kind of tenancy. Leaning on the knowledge and expertise of property managers is a great asset for any landlord when it comes to investment properties," says Goslett.
Author: Property 24