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The Garden Route. An international tourism Gem!

The Garden Route, located along the south-western coast of South Africa, is known for its breathtaking scenery, diverse wildlife, and rich cultural heritage. This area has become a popular tourist destination for both local and international travellers due to its unique attractions and experiences.

The Great Garden Route area spans approximately 300km from Mossel Bay in the Western Cape to Storms River in the Eastern Cape. The route includes a variety of towns and cities, each with its own charm and character. Popular destinations along the route include George, Knysna, Plettenberg Bay, and Tsitsikamma National Park.

One of the main draws of the Garden Route is its natural beauty. The area boasts a stunning coastline, pristine beaches, and lush forests. Visitors can take in the sights on scenic drives along the coastline or hiking trails through the forests. Wildlife enthusiasts can also enjoy game drives and safaris in several game reserves and national parks in the area.

The Garden Route also has a rich cultural heritage that is reflected in its many museums, galleries, and historic sites. One example is the Diaz Museum in Mossel Bay, which celebrates the first recorded landing of European explorers in South Africa. The Outeniqua Transport Museum in George is another popular destination, showcasing the history of transport in the area.

The region is also known for its excellent food and wine, with many restaurants offering fresh seafood, local produce, and award-winning wines. Visitors can also take part in wine tastings and vineyard tours at several wineries in the area.

The Garden Route is a destination that caters to a wide range of interests and budgets. Accommodation options range from luxury hotels to budget-friendly backpacker hostels, and activities range from adrenaline-pumping adventures like bungee jumping and shark cage diving to more relaxing pursuits like spa treatments and beach walks.

But what makes the Garden Route stand out as an internationally preferred tourism destination?

One reason is its accessibility. The Garden Route is easily accessible from major cities like Cape Town and Johannesburg, and the region has its own airport in George. This makes it an ideal destination for international travellers looking to explore more of South Africa.

Another reason is the diversity of experiences on offer. From natural wonders to cultural attractions, the Garden Route has something for everyone. It also offers a range of activities and experiences that are unique to the region, such as the Knysna Oyster Festival and the Tsitsikamma Canopy Tour.

The Garden Route is also a safe and welcoming destination, with a well-developed tourism infrastructure and a reputation for friendly locals. This has helped to attract a growing number of international visitors in recent years.

The Garden Route is a unique and diverse destination that has become increasingly popular with both local and international travellers. Its natural beauty, rich cultural heritage, excellent food and wine, and range of activities and experiences make it an ideal destination for those looking to explore more of South Africa. With its growing reputation as an internationally preferred tourism destination, the Garden Route is set to continue attracting visitors from around the world.

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Hosting, To go it alone or not?

As a property owner, you may be wondering whether to manage your short-term rental property yourself or use a professional short-term rental management company like Ultraverse. While managing your own property may seem like a good option, there are many reasons why you should consider using a professional management company.

First and foremost, using a professional short-term rental management company like Ultraverse can help maximise your rental income. We have years of experience in the industry and are well-versed in the latest pricing and occupancy trends. This means that we can optimise your rental rates and occupancy to ensure you get the highest possible return on your investment.

Additionally, managing a short-term rental property can be time-consuming and require a lot of attention to detail. As a professional management company, Ultraverse takes care of everything from marketing your property to managing bookings, handling check-ins and check-outs, and coordinating cleaning and maintenance. This means that you can focus on other aspects of your life while still reaping the benefits of short-term rental income.

Another benefit of using a professional management company like Ultraverse is the added security and peace of mind. We thoroughly screen all guests before accepting their bookings and require a security deposit to ensure the property is looked after. Additionally, our team is available 24/7 to handle any issues that may arise during a guest’s stay, from maintenance issues to emergencies.

When it comes to marketing your property, Ultraverse has a team of experts who can help showcase your property in the best possible light. We use a range of marketing techniques, including professional photography and targeted advertising, to ensure that your property stands out and attracts high-quality guests.

Finally, using Ultraverse as your host or short-term rental management company means that you can benefit from our years of experience and knowledge of the industry. We stay up to date with the latest trends and regulations, ensuring that your property is always compliant and optimised for the best possible rental income.

In conclusion, using a professional short-term rental management company like Ultraverse can help maximise your rental income, save you time and hassle, provide added security and peace of mind, and benefit from our years of experience and knowledge of the industry. If you’re considering renting out your property on a short-term basis, we would like you to contact us to learn more about how we can help you achieve your rental goals.

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Why short term rental is becoming the preferred business model for property owners.

As a professional host of short term rentals, I have seen firsthand how this type of accommodation can provide an excellent alternative to traditional long-term rental properties. In this article, I will explain why short term rentals are a great choice for landlords and property owners and why they should consider renting their properties on a short term basis especially if the appoint a host to manage it in person.

One of the biggest advantages of short term rentals is the higher rental income that can be generated. While the occupancy rate may be lower compared to long term rentals, the nightly rate charged for short term rentals is often much higher. Over time, this can lead to a significant increase in rental income, especially when properties are in high demand such as Mosselbay or the greater garden route area.

Another benefit of short term rentals is the ability to adjust the rental rates according to the market demand. This means that during high season or peak travel times, the property owner can charge a premium for the rental, which can increase the income substantially. Additionally, by offering short term rentals, landlords can take advantage of the growing trend of remote work, digital nomads and flexible travel, which can lead to longer stays and a consistent income stream.

Short term rentals also offer an opportunity for better property maintenance. As the property is frequently occupied, landlords can ensure that the property is well-maintained and any necessary repairs can be addressed quickly. This can help to avoid long-term issues, which could be expensive to fix if left unattended. Something you only find out after the tenant has left.

Furthermore, short term rentals offer a more secure option for landlords. With short term rentals, property owners have more control over who stays in their property. They can screen potential guests more carefully and may require a security deposit to ensure the property is looked after. Additionally, as guests are only staying for a short period, there is less risk of damage or wear and tear on the property.

In terms of profitability, short term rentals can offer much higher returns compared to long term rentals. This is particularly true when you factor in the potential for seasonal or peak time rate increases, which can significantly boost rental income.

One spesific factor to consider is that even though occupancy and revenue may be lower during off peak seasons and rates and revenue may be lower, this is also true for maintenance. With short term rentals no-occupation-no-cost is to the benefit of the property owner. The goal in such a case is to get maximum occupation even if at lower rates. The goal is only a third of the rent of the long term tenant as it is compared to full occupation.

Let me explain.

During the peak season, occupation is much easier and therefore the rates can then be the focus and therefore maximising rates during peaks season should be the focus. During off peak season the model is slightly different.

To take an example:

If a property is rented for only R500 per day for ten days during off peak seasons the rent may be much lower than what could be earned in a long term agreement. Let us say 10 days (30% occupation). That is only R5000 for the month. However, this is compared to full occupation rates. If the property is rented for long term at R10 000 per month the revenue per day will be less than for short term tenants. If rented at R10 000 per month that effectively means 100% occupation and at R10 000 / 30 days is R330 per day. BUT, the associated costs are also higher and the flexibility is reduced and risk is vastly increased with a longer term tenant.

Think about this carefully as this is why the other benefits of short term rentals are now becoming even better.

Other associated risks with long term tenants.

In South Africa this is a major factor as problems like non paying tenants and evictions are always in the hands of the property owner. If such a risk were to appear the benefit of earning an income not only falls away but any other benefit of perhaps renting out during peak season is lost and may even cost the property owner in damages and cancelation fees if it was rented to guests over the peak season, not to mention the legal costs.

All of the above let the other benefits become more enticing to the property owner.

The offer of greater flexibility for owners who may want to use the property themselves or sell it in the future. By renting on a short term basis, the property owner has greater flexibility to use the property themselves or sell it on the market without worrying about tenants.

In conclusion, short term rentals provide landlords and property owners with a unique and more profitable way to rent their properties. With the added benefit of greater flexibility, increased rental income, better maintenance, and greater security, short term rentals are an increasingly popular choice for property owners. As a professional host of short term rentals, I encourage landlords to consider this type of rental for their properties and experience all the benefits it has to offer.

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Pinnacle Point. The Investment opportunity to get into now.

If you’re considering investing in property in South Africa, then Pinnacle Point Golf Estate in Mossel Bay should be at the top of your list. This luxurious estate is a popular destination for both locals and tourists alike, offering a range of amenities, stunning scenery, and unbeatable investment opportunities.

Located on the coast of the Garden Route, Pinnacle Point Golf Estate is a paradise for golfers, with its championship 18-hole golf course designed by renowned architect Peter Matkovich. But golf is just one of the many attractions of this beautiful estate, which offers stunning ocean views, world-class restaurants, and luxurious spa facilities.

So why do people choose Pinnacle Point as their preferred investment when looking for property investment opportunities? Here are just a few of the reasons why:

  1. Location: Pinnacle Point Golf Estate is located in one of the most beautiful areas of South Africa, offering stunning ocean views, pristine beaches, and a range of outdoor activities, including hiking, surfing, and fishing. It’s also just a short drive away from Mossel Bay town, which offers all the amenities you could need.
  2. Luxury Amenities: Pinnacle Point Golf Estate offers a range of luxury amenities, including a clubhouse, restaurants, spa facilities, and more. This makes it an attractive destination for those looking for a luxurious and comfortable lifestyle.
  3. Security: Pinnacle Point Golf Estate is a secure estate with 24-hour security, offering residents peace of mind and a safe and secure living environment.
  4. High Investment Returns: With its prime location, luxury amenities, and growing demand for high-end properties, Pinnacle Point Golf Estate offers excellent investment opportunities with high returns on investment.
  5. Community: Pinnacle Point Golf Estate has a strong sense of community, with a range of social events and activities that bring residents together. This creates a welcoming and supportive environment, making it easy for newcomers to feel at home.

Pinnacle Point Golf Estate is an unbeatable investment opportunity in one of the most beautiful areas of South Africa. With its stunning ocean views, luxury amenities, secure living environment, and high investment returns, it’s easy to see why people choose Pinnacle Point as their preferred investment when looking for property investment opportunities. If you’re considering investing in property in South Africa, then Pinnacle Point should be at the top of your list!

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Many are relocating to Mosselbay.

Mossel Bay is a beautiful coastal town that has been attracting tourists from all over the world for many years. However, many visitors to Mossel Bay are finding that they don’t want to leave after their vacation is over. In fact, many are choosing to buy property or relocate to Mossel Bay. Here are some of the reasons why people are falling in love with this charming town and choosing to make it their home.

  1. Quality of Life: Mossel Bay offers an unbeatable quality of life, with its mild climate, beautiful surroundings, and relaxed coastal lifestyle. Whether you enjoy hiking, fishing, surfing, or simply soaking up the sun, Mossel Bay has something to offer everyone.
  2. Affordable Property Prices: Compared to other coastal towns in South Africa, Mossel Bay offers affordable property prices, making it an attractive option for those looking to invest in property or relocate to the area.
  3. Safe and Secure: Mossel Bay is a safe and secure town, with a low crime rate and friendly locals who are always happy to lend a helping hand. This makes it a great place to raise a family or retire.
  4. Strong Community: Mossel Bay has a strong sense of community, with a range of community events and activities that bring people together. This creates a welcoming and supportive environment, making it easy for newcomers to feel at home.
  5. Good Infrastructure: Mossel Bay has a good infrastructure, with excellent schools, hospitals, shopping centers, and other essential amenities. This means that residents can enjoy all the benefits of a small town lifestyle without sacrificing convenience or access to modern amenities.
  6. Growing Economy: Mossel Bay has a growing economy, with a range of business opportunities in the tourism, agriculture, and fishing industries. This makes it an attractive destination for entrepreneurs and business owners who are looking to grow their businesses and take advantage of the town’s growing economy.

Mossel Bay is a beautiful coastal town that has much to offer, making it an attractive destination for visitors and residents alike. From its unbeatable quality of life and affordable property prices to its safe and secure environment, strong community, good infrastructure, and growing economy, there are many reasons why people are choosing to buy property or relocate to Mossel Bay. If you’re considering making the move to Mossel Bay, you won’t be disappointed!

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Is short term rentals the better option?

Short-term rentals have been on the rise in recent years and for good reason. They offer a number of benefits over long-term rentals, particularly when it comes to security and revenue maximisation. In this article, we’ll take a closer look at why short-term rentals are safer, more secure, and a better option for property owners.

  1. Increased Flexibility: With short-term rentals, property owners have the ability to change guests more frequently, allowing them to better control their properties and maintain high levels of security. In addition, short-term rentals are more flexible in terms of occupancy, making it possible to adjust to changes in demand.
  2. Better Screening Processes: The screening process for short-term rentals is more thorough than that of long-term rentals. Guests are often required to provide more personal information, including a valid ID, which helps to ensure that they are who they say they are. This information can also be used to perform background checks and verify that guests are reliable and trustworthy.
  3. Higher Revenues: Short-term rentals offer higher revenue potential than long-term rentals, as they allow property owners to charge a premium for the convenience and flexibility they offer. With short-term rentals, property owners can take advantage of seasonal changes, local events, and other demand-driven fluctuations in the market.
  4. More Control Over the Property: Property owners have more control over their properties when they opt for short-term rentals, as they can regulate access, inspect the property between guests, and maintain a higher level of cleanliness. With long-term rentals, property owners are often limited in what they can do to maintain the property, as they are bound by the terms of the lease.
  5. Fewer Risks: Short-term rentals are generally considered to be safer and less risky than long-term rentals, as they often require guests to provide a security deposit, which helps to reduce the risk of damage to the property. In addition, property owners have the ability to terminate a rental agreement if the guest violates the terms of the agreement or if the property is damaged.
  1. Access to a Wider Range of Guests: With short-term rentals, property owners have access to a wider range of guests, including tourists, business travelers, and even local residents looking for a place to stay for a few days. This increases the potential for revenue and reduces the risk of long periods of vacancy.
  2. No Long-Term Commitments: With short-term rentals, property owners are not tied down to a long-term commitment, as they can adjust their rental strategies as the market changes. This allows them to respond quickly to changing demand, reducing the risk of vacancy and lost revenue.

Investing in an short term rental property can be a lucrative business, but it’s important to choose the right property to maximise your investment. Here are some key considerations to keep in mind:

  1. Location: Look for properties in popular tourist destinations or areas with high demand for short-term rentals. Consider factors like proximity to attractions, transportation, and amenities.
  2. Market Trends: Research local market trends to understand the demand for short-term rentals, occupancy rates, and pricing. Look for properties in areas with growing demand and increasing occupancy rates.
  3. Property Type: Choose a property type that is in high demand, such as apartments, studios, or vacation homes. Consider the size and layout of the property to ensure it can accommodate multiple guests.
  4. Cost vs. Potential Earnings: Consider the cost of the property compared to its potential earnings. Look for properties with a high potential for profitability and make sure to factor in the cost of renovations, marketing, and supplies.
  5. Regulations: Research local regulations to ensure the property complies with all laws and regulations for short-term rentals. Look for properties that are permitted for use as an Airbnb rental.
  6. Maintenance and Upkeep: Consider the cost of maintenance and upkeep, as well as the potential for property damage from guests. Make sure the property is in good condition and can be easily cleaned and maintained.
  7. Competition: Consider the competition in the area, including the number of similar properties and their occupancy rates. Look for properties that have an advantage over the competition in terms of location, amenities, or price.

In conclusion, short-term rentals offer numerous benefits over long-term rentals, including increased flexibility, better screening processes, higher revenues, more control over the property, fewer risks, access to a wider range of guests, and no long-term commitments. For these reasons, short-term rentals are a safer, more secure, and a better option for property owners looking to maximise their revenue and minimise their risks.

Start today, Do it right and Grow your wealth.

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Separate property ownership from the short term rental business when you invest for an additional revenue stream.

Two Business Models:

Investing in property is a popular way to build wealth over the long-term, but many property owners are now exploring the potential for short-term rental as a way to generate additional income. While some investors see short-term rental as simply an extension of their property investment, the truth is that these two businesses are distinct and require different approaches to be successful.

First, it’s important to understand that owning a property and operating a short-term rental business are two separate financial entities. Property ownership is a long-term investment, and its success is largely dependent on factors such as location, market conditions, and property value appreciation. In contrast, the success of a short-term rental business is dependent on factors such as demand, marketing, and operational efficiency.

This difference is why it’s essential to keep the financials of these two businesses separate. For example, you may want to consider setting up separate bank accounts for each business and tracking expenses and income specifically for each. This will make it easier to monitor the performance of each business and make informed decisions about future investments.

In addition, owning a property and operating a short-term rental business each require different skills and knowledge.

Property ownership is primarily a passive investment and capital growth business model, while short-term rental is an active business that requires ongoing attention and management and can enhance the capital value but is not the same. Even your tax breaks and benefits are separated and should be managed accordingly.

Investors who are new to short-term rental may find it helpful to seek the help of a property management company or hire a professional to handle the day-to-day operations.

Finally, it’s important to be aware of the legal and regulatory requirements for both property ownership and short-term rental. Regulations for short-term rentals vary by jurisdiction and can be complex, so it’s essential to do your research and understand what’s required before entering the market.

In conclusion, property investors who are considering a short-term rental business should separate the financials of the two businesses and treat them as two distinct entities.  By approaching these businesses with the appropriate level of focus and attention, property investors can maximise their returns and build wealth over the long-term.

Kobus van Rooyen

Also read. about Short term vs Short term Rentals.

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Short Term rental VS Long Term rental.

Renting out a property can be a great way to generate income, but the approach you take will depend on the type of rental market you decide to participate in. Two common rental markets are short-term and long-term. Here, we’ll explore the key differences between the two, and why one may be a better choice for your specific needs.

Long-term Rentals

Long-term rentals refer to a lease agreement between a landlord and tenant for a period of 6 months or more. The tenant is usually required to pay rent on a monthly basis and may be required to sign a lease agreement. Long-term rentals offer several benefits for both landlords and tenants. For landlords, a long-term tenant can provide a steady source of income, as the tenant is likely to stay for an extended period of time. Additionally, long-term rentals are less likely to experience high turnover rates, which can be a headache for landlords who must constantly find new tenants.

Short-term Rentals

Short-term rentals, on the other hand, are rental agreements that last for a shorter period of time, often just a few days to a few weeks. The most common type of short-term rental is vacation rentals, where individuals rent out their homes or apartments to travellers visiting a particular location. The primary benefit of short-term rentals is the flexibility they provide. Landlords can earn more income as they can rent out their properties more often, and can adjust their prices according to demand.

Flexibility

One of the biggest benefits of short-term rentals is the flexibility they offer. Unlike long-term rentals, which occupy a property 100% of the time, short-term rentals allow the landlord to choose when to rent out their property and for how long. This means that landlords can earn extra income when they need it, and they can also choose to take a break from renting if they wish. This level of flexibility is one of the reasons why short-term rentals are becoming increasingly popular, particularly for those looking to supplement their income or make a full-time living from their property.

In addition to the benefits already mentioned, there are other factors to consider when deciding between short-term and long-term rental markets. One important factor is the cost of maintaining the property over the long term.

Long-term rentals may seem more appealing at first glance, as the tenant is responsible for paying rent on a regular basis, providing a steady source of income for the landlord. However, with a long-term tenant, there is less control over how the property is being used and maintained. Over time, this can lead to wear and tear, and the need for costly repairs. Furthermore, long-term tenants may make alterations to the property without the landlord’s permission, further reducing the property’s value.

On the other hand, short-term rentals offer more control over the property and how it is being used. Regular check-ins and check-outs allow landlords to assess the condition of the property and address any issues that may have arisen. Furthermore, short-term rentals can be more lucrative in the long run, as landlords have the ability to adjust rental prices according to demand and generate more income over time.

In conclusion, the decision to participate in the short-term or long-term rental market will depend on your specific needs and goals. Whether you choose short-term or long-term rentals, it’s important to consider all the pros and cons and choose the approach that best suits your needs. While long-term rentals offer a steady source of income, short-term rentals provide greater control and flexibility.

PS. Also refer to my previous post about “Two business models”

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Short Term rentals vs Long Term rentals for your property investment.

For property owners, hosting short-term rental guests can offer several benefits that make it a better option than renting to long-term tenants. Here are a few reasons why:

  1. Increased Flexibility: With short-term rentals, property owners have the flexibility to change the rental schedule as needed, making it easier to accommodate peak travel times and seasonal demand.
  2. Higher Returns: Short-term rentals tend to generate higher returns compared to long-term rentals, as property owners can charge premium rates for the convenience and amenities that come with a short-term stay.
  3. Lower Maintenance Costs: With shorter stays, property owners are able to limit the amount of wear and tear on their property, helping to keep maintenance costs low.
  4. No Long-Term Commitments: Renting to long-term tenants requires a long-term commitment, whereas short-term rentals are more flexible, allowing property owners to adjust the rental schedule as needed.
  5. More Opportunities to Rent: With the rise of travel and tourism, there is a growing demand for short-term rental accommodations, providing property owners with more opportunities to rent out their properties.

In conclusion, for property owners looking to maximize the return on their investment, hosting short-term rental guests is a smart choice. With increased flexibility, higher returns, lower maintenance costs, and more opportunities to rent, short-term rentals offer a number of benefits over long-term rentals

“Short-term rentals: The smart choice for property owners seeking flexibility, higher returns, and endless opportunities.”

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