 My family and show South African style let me greet you in our beautiful languages. Melange to our sweet you, our Tuane and our pretty family. We are Tuane like me. We are 90 to our Afrikaans family. To our Zulu family, we say Sanibu Nani. Dima de Guanabu, due to our vendor family, in Isindadele, the Lichonili. Good evening everybody. My name is Martha Shingange and I'm so happy to be guest hosting the 348th episode and the very first holiday edition of the Private Property podcast. How awesome is that? And of course, happy Heritage Day family. I hope you have all enjoyed today with great pride celebrating all that makes us uniquely South African. Let's see who is joining us this evening. And I see the Isindadele, Shabikia Stermit. I see Lechirinda. That's all in Angkor. I see the Stray similar. I see Golanikini, Magunda. Please do share what you have been up to today. We would really love to hear from you. And really thank you to all our fans, all of you. Over a million of you on Facebook and Instagram and YouTube. We're tuning in every weekday evening at 7pm and 8pm for our great shows. We really hope that you are finding value. All your journey is as a Private Elf, as a property investor, whether you're a tenant or a farmer. And of course on a Friday like this, you can catch your home by a show with Chad after this podcast for a tour of our gorgeous homes around South Africa. We'll start again on Monday with Chad. He's coming back again on Mondays and you'll be followed by Mali who comes in on Tuesdays and Thursdays for the farming podcast. And of course Esti is on Wednesdays with a first time home buyer's show. So really, whatever your interest, we've got you covered. Personally, I watch all the shows and have learned so much. I just haven't made much progress on the home garden though. But one day is one day. And just a reminder that our competition is still on. You all know about our awesome, our fantastic competition that we've been running for over a month now. I think we have of course begged the 20,000 comments, but we still need to get to the 10,000 shares. I really hope that you are still sharing and taking your family and friends to make the circle even bigger. The details of the competition are on the pinned post on our Facebook page. Don't forget the hashtags that you must use and that is hashtag one million followers, hashtag 20,000 comments, hashtag 10,000 shares. And of course we'll find out whose weekend plans will be made lit when we announce the winner of the 500 grand cash prize later in the show. The cash prize had been rolling over for a few days until Fulu fellow Michelle Hope won 2,500 grand on Wednesday and I see she is joining us this evening. So well done and congratulations once again Fulu fellow Michelle Hope. Remember, you have to claim the prize during the show if your name is selected as the winner because if you don't, then it's going to be a roll over to next week Monday. So Fem, as you enjoy your bri, which I hope you are doing this evening, we are discussing a very interesting topic on the anticipated spike in the rental market. Now for a landlord or a landlady like me, this is great news to hear that the market has been recovering or it's actually recovering. To talk more about this, I'm joined by Megan Ledbrook, who is the general manager of Only Reality Group. Happy Heritage Day and welcome to the show, Megan. How are you? I'm great. I'm awesome. How are you? No, I'm good. I'm great. I had a great Heritage Day. I hope everybody out there did as well. Awesome, awesome. So as we're chatting offline, I was saying that you are actually making history this evening as the very first guest of the private property podcast holiday show. Yeah, I'm excited. It's a great honour. I'm so chuffed. Thank you so much for having me. We are so honored to have you. Thank you so much for taking time on a holiday like this to really talk to us about property, all things property related. No, it's a pleasure. Great. So let's get to it, Megan, because you really are a bearer of great news this evening and I cannot wait to hear from you. A few months into the COVID-19 lockdown in March, the Reserve Bank went on a, I don't want to call it a spree, but they reduced the interest rate quite drastically. The interest rate haven't been this low in over 70 years. And that has made it possible for many to be able to afford owning a home. It was for a long while a biased market, as we have had a few experts looking into the situation. So with the impact of the pandemic, indicating further uncertainty in the economy, the banks are becoming more stringent in their lending criteria. Like honestly, it really has been a rather be me 18 months. So Megan, what have been some of the challenges that the rental market has gone through during this period? So Martha, one of the biggest challenges I think for landlords out there has been obviously the impact of COVID. Tenants who have been impacted financially, some of them have lost their jobs. And besides that, then the tenants who hadn't been impacted had the benefits of being able to actually get into the property market and purchase their own homes because of the interest rate being so low. So landlords were left quite on the back foot trying to fight over the best tenants that were left in the markets. But yeah, I think just in general across South Africa, all industries have really struggled in the last 18 months. But we're seeing things improve steadily. So it's been quite exciting for us. Yeah, great stuff. Yeah, I think it's been a challenging time for me. I mean, I'm a new property investor. I went in just after lockdown thanks to private property. I've been watching the shows and I was like, wow, this is quite exciting. Let me also just go in. Then I went in and bought a few properties and at first it was a bit challenging to get tenants because it seems like a lot of people just couldn't afford their rentals anymore. But it seems to be getting better. So do you want to share with us in terms of how things are looking? I'm not sure whether I'm just optimistic on my side that I've noticed that it is getting, but there is some kind of improvement. Are you definitely not optimistic? And we've seen such a positive upswing. I think as businesses recover, tenants in general are in better financial positions. You know, landlords are now able to ask for slight increases in their rent, whereas before they've been hanging on and sort of keeping everything at the same level. But there's definitely, definitely been an increase in demand from a landlord perspective, most interestingly in sort of the mid-range price bracket. So we've seen a lot of growth in that area. And I suppose that's where people probably most hard hits, you know, the lower income who were struggling sort of went into house shares, mid-markets sort of had to sit and stick where they were and the higher income bracket was normally sort of left a little bit less less scathed. That's the right way to put it for COVID. But yeah, so when we're seeing such a healthy, healthy demand for rentals in the sort of seven to 10,000 round price bracket, they give better yields for the landlords. So yeah, it's been good. And especially in areas that we've seen Eastern West Rand and Johannesburg have been really positive at Jogwick North, so Northern suburbs. But also, you know, don't forget about places like P.E. You know, P.E. is really a good place to invest at the moment if you're looking for something where you're going to be able to find a good return on your investment at Dolphin Coast. So, you know, Belito, Sharkers Rock and Schlunger and Northwoods. And then interesting in Cape Town is it's more than Northern suburbs that we're seeing quite a lot of growth as opposed to. The CBD has always been the magic area, but they've been really struggling. So yeah, so it's been interesting. Oh, quite interesting insight. P.E., I never thought of it. We know that Cape Town is always, you know, struggling because the rentals are quite high and the margins, most of the time, they tend to be on the downside. It really is quite encouraging to hear that it's not all doom and gloom and that things are starting to pick up. So as landlords, we'll be having those conversations with our talents asking for a little bit more, but obviously still keeping it quite on the conservative because I don't think we're really out of the woods as yet. No, not at all. I must say, though, if you check the tenants and good standing sort of stats from TPN, that's quite interesting. We're now sitting at just over 80% for the same period this year, 2021, versus last year where it was 73%. So, you know, those are very encouraging numbers. You can definitely see that quarter two of 2020, which is obviously when hard lockdown was, since 2021, seen a big improvement. Oh, that is absolutely awesome. So really, this now is saying to us and confirming that rental property investment is still a pretty good idea. Well, you know, the properties, I suppose one of those things, as I said to you earlier when we were applying, there's never a better time to invest than now. So, you know, if you're keen on getting involved, you know, jump in and just make sure you do your research in terms of areas. If you're going to be a landlord, what sort of your competition will be like out there which would be very selective about which spaces you invest in. But yeah, it's always a good time. Yeah, that is great. I mean, as we always say in the show, location, location, location. And of course, run those numbers before you jump in. But really, I think the message is now is, it's a good time. It's a good time to be investing in rental property. So as you opened earlier on, opening remarks and your earlier comments, we were talking about the challenges of COVID-19, the impact that they've had on the consumer and they've really gone through a lot. And some are still going through some of the challenges. What is the environment like among good standing tenants, especially because that's where the magic is. So those are the people that we're actually looking for. Are they downscaling? What are their plans? What is happening with our tenants? So I mean, it's really actually quite interesting. So we're seeing a lot of people that are opting to rent instead of opting to buy, which I found very interesting. Obviously, we always have in our minds that if you're going to grow up and property ownership is the next step. But we're seeing a lot of tenants in good standing who have the means and the ability to buy that are choosing to rent. So a lot of them are renting bigger properties, which they might not be able to afford if they were getting a bond, but the rental makes it affordable for them. And also because people are spending more time at home, those tenants who the sweet spots are also looking to have a better quality of life. So we're seeing a lot of people opting to rent properties that they might not necessarily be able to afford themselves. So that's been very interesting. And then on the flip side, we're seeing a huge increase in the trend of those tenants in good standing deciding to share with friends. So house-sharing is becoming a big market, which is, I suppose, great from a landlord perspective because you have two good tenants instead of one. So they're seeing single people sharing with other single people and it just gives them a better quality of life. So instead of maybe a one bedroom flat, they can rent a house with a pool and pool their resources and just have something that's a little bit more enjoyable for their lifestyle. Wow, interesting developments. And I suppose now with more people being able to work from home, people can actually live anyway. I've read some of the people who are now opting for the coast. I mean, I love the beach. If it was possible for me to relocate to the coast, that would be awesome. And I suppose renting in that regard might make it more financially viable rather than having to buy the property. And we know that most of them, they don't come cheap, eh? That's true. It's a bit heavy. It is. Yeah, it is a lot. But I think that you raised the perfect point there. There's been such a huge influx of people from inland areas, moving to coastal areas. So that's also definitely generated a lot of interest in rentals in those spaces. It's difficult to relocate to a new town and sort of jump in and buy a house straight away. So most people are renting, sort of checking the areas, seeing what works for them, what works for their families. So that's had a huge impact on rentals at the coastal towns. Interesting times indeed. Now, Megan, we need to go for a quick break to announce the lucky winner of the 500 rents from our competition. And of course, the winner on this Heritage Day is selected by our random peek-a-ease. Let's wait for it. And the winner is Alfred Twiley. Congratulations, Alfred. Let us know if you are watching the show in the comment section to claim your prize. Remember, you have to do this whilst the show is live because if you don't, then the prize menu is rolling over to Monday. Congratulations and enjoy your prize. We are making more winners every single day. So remember to comment, you tag your friends, you share the post on our Facebook page to stand a chance of winning just like all the other winners that we have had for over a month now. So, Megan, as we wrap up the show, and I mean, this has been quite an insightful discussion. I want us to now look at two things. Firstly, we spoke about good standing tenants that they start to quite improving. They are picking up things and looking up. It's all great. So how do we as landlords, because that is quite important, to keep them, particularly during these times where the competition is quite high in the market. It's probably a renters market. They have more choices. There's more things on offer by different landlords. What can we do to make us stand out? So, I mean, that's not just different landlords. I mean, there's so much development going on at the moment and there's competition from new properties as well. They always seem to have all the bells and whistles. And sometimes I know landlords get a little bit despondent and think, you know, how are we going to compete? But ultimately, tenants are people and it comes down to relationships. So my biggest tip for keeping and attracting a tenant is to make sure that everyone goes into their arrangement with the same sort of goal, which is to make sure that the tenant's happy and the landlord's happy. So my biggest tip there is make sure that the property is actually in good condition and priced right, which is fair to the tenant and fair to you. So you're immediately going to attract more interest on your property if it's something that looks like you've cared about it because then the tenant's going to feel like, you know, while they're living there, you're going to be a good landlord. But definitely make sure that you look after your property and communicate with the tenants. And so as soon as you get inquiries, if you're listing it yourself, respond immediately and make sure that you get back to those people because those tenants are looking at 10, 20, 30 other properties. So if it takes you two or three days to get back to them, they might have already found something else. So you have to be quite on the ball. Yeah, and I think, you know, that's the biggest thing to sort of try and find the tenants. And then once you've got them, the trick is to keep them. And that, you know, is obviously also down to relationships. So, you know, if you're using parental agents to manage it, make sure that they, on top of everything, they're reacting to complaints from the clients and they're making sure that you are notified when there's something that needs to be done. And also just keep those lines of communication open. So, you know, if the tenants, you know, does run into some sort of problem, you know, they can chat to you and vice versa, you know, if you're needing access to something. So, yeah. So I think it's really about the unique value proposition that will now distinguish you from the rest. Like you're saying now we're not just only competing amongst landlords, but there's also the developers. I mean, I've seen quite a few of them. They're no longer only selling their developments. They're also renting them, which is just making things and be challenging, you know, and quite exciting for the market. So really basics, your communication, that is quite a big thing. Your pricing, that's also quite another big thing. We've got one of our fans, who always says that, you know, it just goes a little bit lower. You know, that's his trick. He just says that, you know, you look at the market, look where the market is and try to beat that. And we can only beat that by going down just a little bit lower because everyone is in terms of the tenants. They are just looking for that property that has all the nice things, the bells and the whistles. But at what price is it coming in? So price competitiveness has really just become a big thing. It really is. It really is. And if you feel like you can't compete on the rental price, then you know, maybe look at some extra things that you can throw in. Maybe you can throw in free fibre or, you know, water and electricity or just something that will just sort of smooth the, make the transition a little bit easier for the tenants. So you've got to be creative. Just always be looking at what else, what else can you do? What else can you change? What else can you improve? So constantly just reinventing your, your, your, your offerings really. But I think what is also quite coming up strongly is that human touch, you know, people, you know, tenants are people at the end of the day and how we make them feel counts more than sometimes, you know, the money doesn't make up for it. But what, how they, how we make them feel, how we treat them, how we relate to them. You know, it makes a whole lot of a difference. It does. And, you know, if you, if you take the view that, I mean, these, these great tenants are, I mean, there's so many of them and it's wonderful to work with the tenants who sort of takes care of the property and treats it like it's their own. But there's not, you know, never ending supply of them. So when you've got one, you know, you really need to appreciate them. You really need to realise that it is a, it is a blessing that you've got this person and a blessing for them that they've got the property. So, you know, yeah, I agree with you. The human touch is something that you can't actually put a value on. It truly is. I'm loving a comment here from a gen, C.P. W. P. Smith is saying a fellow property guru, read on really exactly what we were talking about the other day. Indulge yourself. I just love the fact that, you know, these shows, they just bring in so many insights that discussions that we're having with our fellow property investors, you know, and it all just comes in together. And when we come to these platforms, a lot of things are confirmed. We learn quite a lot of things. So it's quite empowering, you know, to be part of these shows every single weekday at 7 p.m. We've got different experts like yourself, Megan, coming in to talk to us about how we can really strive to be successful in our property investment journey. So we really appreciate that you always take the time to come talk to us so that we grow. We really appreciate this. And I mean, all of this is for free. So well done to private property. We really, really appreciate this. And Megan, the last one from me, what does the future look like for the rental market? What can we look forward going into the next year, into the next few months? What's in store? So I think I hate questions like this because you put something down and then something happens and everything gets thrown out the window. No, I think the rental market in for a little bit of a boom. And I think across all price ranges. So from the sort of entry level prices, I think you're going to see quite a big spike in properties where people are doing micro-living and sort of that shared communal areas and the smaller rooms that they're in. I think you're going to see a huge increase in that. But then all the way up to sort of more expensive properties, family homes. I think we're going to see people that are keen to move and keen to sort of spread their wings a little bit and try different areas. They're going to be renting. And yeah, I think we're in for exciting times. I wanted to congratulate you on taking the plunge after COVID and buying property. Most people were sort of panicking and selling and you know, you did the opposite. So I think that's quite brave. But I think landlords are hopefully in for a really positive time. Yeah, absolutely. We must always find that silver lining in everything. In a disaster or in a challenging time, we must find opportunities. And I think that's what property investment is about. Finding opportunities. So really it's quite exciting. And the insights that you have shared are really helping us to think about what next, you know, insights like this. They help us in making our property investment decisions because the whole point is for us to grow. So this is really, really helpful. And Megan, I honestly feel optimistic about the future of our rental investments. Thank you so much for the insight that you have shared with us. We appreciate that. It was a pleasure. Yeah, on a heritage day. So yeah, we are some of the few people who are waking this evening when a whole lot of other people are really just taking it easy this evening. So we really, really appreciate that and wish you a fantastic weekend further. Thank you so much. Same to you. Thank you so much for having me and I just want to congratulate Alfred and hopefully he spends the money well over the weekend. Oh, yes. Yeah. I'm just going to look check now to see if he has claimed the prize because he needs to comment and tell us that he is watching so that we can give him the money because otherwise it's just going to roll over to Monday. But thank you so much. It's a pleasure. Have a great day. Thanks, Martha. Same to you. Thank you. Great stuff. So let me just look at the comments now. All right. It doesn't look like Alfred is here. It's a roll over. It's definitely a roll over. So on that note, it's time to call it a week. Thank you so much for keeping me company this evening and for your lively engagement as always. Remember your 7 p.m. weekday appointment with Zama on Monday. It's going to be a great one. So for now, let's go shopping with Chad on the Homebuyer's show up next at 8 p.m. So fam really have a fantastic weekend further. Sending you lots of green hats. Until next time. Good night. Stay safe.