Since being officially launched as a separate division of the Rawson Property Group in 2011(rather than, as in the past, simply being a part of the Group’s rental operations with no separate identity) Rawson Rentals has sold 19 rental franchises – and they expect to have 30 up and running by the end of this year.
Wayne Albutt, who is the Regional Manager of Rawson Rentals, says that the timing of this launch has been “near perfect” because in the last two years demand for rental property has escalated to the point where it far outstrips supply.
“We are,” he said, “now in a situation where stock shortages are causing rentals to rise countrywide and where buy-to-let residential investors are once again fast to the market.”
This situation, said Albutt, has come about because South Africa has felt the effect of the international economic crisis: jobs have been lost, people have had to move, houses have been repossessed, or sold under distressed conditions, and new development has significantly slowed down.
The situation, he said, has been exacerbated by the National Credit Act, which in some income groups has resulted in the rejection of up to 60% of all bond applications – again forcing people to go the rental route.
Traditionally in South Africa (and in the Rawson Property Group), said Albutt, renting has usually been a subsidiary and less important activity, although in some cases it has been handled by specialist small groups concentrating on one or two areas. To date, he said, only one rental agency has established a national footprint – and the Rawson Property Group believes that there is very definitely room for another.
“While it is true that many of these subsidiary or independent agencies have given excellent client service, it has to be accepted that the skills required for selling are very different from those needed to be an efficient rental agent,” said Albutt, “A split between the two operations, therefore, usually works to the advantage of both of landlords and tenants. Furthermore, it is already clear that the training, intellectual input systems and referral networks, as well as the countrywide advertising, made possible by a national brand can boost an agency’s turnover very significantly. It is not surprising, therefore, to find that the vast majority of our new rental franchise applicants are former independent agencies now looking for a national branding and it is clear from the enquiries received that they appreciate fully the advantages of such a national brand.”
Albutt warned that those rental agencies which in one way or another have sailed close to the wind or possibly even operated unethically should not come looking for a Rawson Rentals franchise – because, he said, being part of a national network enables both landlords and tenants to appeal to the central authority/management who will adjudicate completely fairly and in compliance with the law.
“Regrettably it is true,” said Albutt, “that tough and unscrupulous rental agents, landlords and tenants have on occasion got away with behaviour which would be very definitely condemned by The Rental Tribunal. With a group like Rawson Properties involved here, there will always be a “High Court” to appeal to, for example, the senior management etc., and it will be far simpler and quicker for landlords and tenants to get a fairer deal – or to have the full processes of the law thrown at them if they are in breach of contract. The average man-in-the-street should, therefore, welcome the arrival of another major rental agency on the property scene.”
