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Should You Invest in Beach Rentals?

  • 2016-11-03

In Cape Town, beach rentals are often the most sought-after of all holiday rental properties. For both domestic and international travellers, being close to the beach is a major draw-card. Cape Town is blessed with not one but two oceans, with a wide variety of beach villas and apartments to be found across the city’s coastlines.

Should You Invest in Beach Rentals

The Atlantic Seaboard in particular has become something of a mecca for holidaymakers and honeymooners. This is where some of the most exclusive beach homes on the planet are found. Needless to say, for savvy investors wanting to take advantage of the demand for beach rentals, this property type offers plenty of opportunity. That’s not to say beach properties don’t have their own challenges however.

What to Know About Investing in Beach Rentals

What do you need to know about beach rentals before considering this property type for your investment? Let’s have a look.

  • Not all coastal areas are created equal. As we mentioned earlier, areas along the Atlantic Seaboard include prime real estate that typically falls within the high-end luxury travel market. Major areas here include Camps Bay and Clifton. The False Bay coastline is popular, but as it lies away from the CBD and major attractions, it does not have the same level of demand as the Atlantic coastline. The Northern Atlantic Seaboard is also further away from the City Centre and its tourist landmarks, with property that falls within the medium price range rather than the higher range.
  • Direct beach access is unusual in Cape Town. Here at Totalstay, we have a very small selection of properties with direct beach access. Such properties are rare, with a price tag to match. If you own a property that lies on the beach, you will certainly reap the rewards. But for many visitors, properties do not have to be right on the beach to be appealing.
  • Properties in walking distance to the beach fare well. If the property is not directly on the beach, being in walking distance is the next best thing. This is a major selling point when promoting your vacation rental property. A smart holiday rental property manager will use this advantage to develop a tailored strategy that helps keep your calendars full even during the off season.
  • Ocean facing properties are always in high demand. It is those iconic sea views, spectacular sunsets and calming coastal vibes that make beach rentals so popular. If you are looking at coastal properties to purchase as a rental investment, sea views can significantly affect your potential income. At the very least, decks, patios or balconies should offer views of the ocean. Bedrooms and living rooms that also offer views are even more sought-after.
  • Apartments and villas near the beach do equally well. Obviously, villas appeal to larger groups and families. But apartments that offer ocean views can be equally sought-after. Positioning is everything in the short term rentals game. This is why it can be incredibly useful to work with an experienced property manager who knows how to actively market your property across multiple channels.

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As a full service vacation rental property management specialist, Totalstay provides a range of personalised solutions. From marketing to day to day management, strategy, bookings calendar management and so much more, we’re here to help you take your property to the next level. To learn more about managed beach rentals, contact us today for an evaluation of your property.