KNYSNA NEWS - Many people have expressed shock at what they perceive to be a massive increase in the price of properties available to rent after the fires. For those who were renting houses that were destroyed, the general feeling is that rental prices in Knysna have spiked and become unaffordable.
Tenants don't benefit from building insurance, only content insurance, as the building insurance vests in the property owner. Many property owners have a measure of protection in that most policies contain the relief that accommodation will be provided by the insurance company until the house can be reoccupied. In some instances, this applies for a period up to two years and to a value that does not exceed a quarter of the total insured value of the property.
A perception has arisen that property owners, knowing or believing insurance companies are paying, are upping their rentals to take maximum advantage. Is this, in fact, the case? "No," say most of our property rental agencies in Knysna.
Rentals in Knysna have always been at a premium and the agencies approached are in agreement that they have not experienced a major spike in rental increases. What they have noticed, as Hans Viljoen from Remax said, is that there has been an increase in available properties, as many "swallows", knowing there is a shortage of rental stock, have instructed agents to let their houses to those in need. Viljoen states that the prices being asked by these people are in line with prices before the fire.
Knysna-Plett Herald compared rental property listings in Knysna before and after the fire and, as can be seen below, it would indeed appear that, in the main, there has been no radical increase in rental prices.
These are just some of the comparative figures (relating to monthly rentals):
Welbedacht
A 3-bedroom, 2-bathroom, 1-garage house was listed on May 30 for R15 000, at the same time as a 4-bedroom, 2-bathroom, 2-garage house was listed for R20 000. After the fire, on June 30, a 3-bedroom, 2-bathroom, 2-garage house has been advertised for R18 000.
Leisure Isle
In April, a 3-bedroom, 3-bathroom house was listed at R16 000 and after the fire, a 3-bedroom, 2-bathroom place was listed at R15 000.
Phantom Pass
In May, a 2-bedroom, 2-bathroom property was listed at R10 000 and another 2-bedroom, 2-bathroom was listed for R10 000 after the fire. In the same estate after the fire, a 3-bedroom, 1-bathroom furnished dwelling has been made available for three to six months, at R15 000.
Pezula Golf Estate listed a 3-bedroom, 3-bathroom, 2-garage dwelling in March for R15 000, and after the fire a 4-bedroom, 3-bathroom dwelling has also been listed for R15 000. (A 2-bedroom unit was listed in February for R13 500.)
Eastford and Kanonkop
Dwelling with 3 bedrooms and 2 bathrooms have been listed for R10 000 after the fire, and in Hunters Home a 3-bedroom, 4-bathroom home has been advertised for R16 000.
This does not say that there are not individual property owners out there who are trying to maximise the money they make, but the good news is that they seem not be dictating the rental prices and so far, there does not seem to be the spike that was anticipated.
What has, however, happened, and which has attracted comment on social media, is that certain guesthouses and holiday accommodation establishments have opened their rooms for weekly or monthly rentals to try and relieve the rental situation.
These prices are more closely related to their daily accommodation rates than to monthly rates. This is for fully furnished units and includes the linen, laundry and cleaning facilities that would be offered by accommodation establishments.
The sad fact remains, however, that there are very few available houses to rent at under R10 000 a month in Knysna, to accommodate families with children and pets.
ARTICLE: JULIE JEFFERYS, KNYSNA-PLETT HERALD CORRESPONDENT
'We bring you the latest Knysna, Garden Route news'
