Part 1 of a 2 Part Blog Series
By Casey Louw
(IGrow Writer)
At IGrow, we have observed a growing demand for short-term rentals. From Cape Town to Johannesburg, we have observed a growing demand for coastal and urban short-term rental properties. They can offer inflation-beating capital appreciation as investment assets and consistent rental income.
I sat down with Carina Kenny, owner of Kinsail Beach Villa in Langebaan on the West Coast. This short-term rental in Cape Town is listed and marketed by the luxury property platform, Perfect Hideaways. Carina’s beach house is an excellent example of how a well-located property, managed well, can be an income-generating asset and a long-term investment that appreciates in value.
Carina’s insights will help IGrow investors considering short-term rental property investments from IGrow Real Estate International. You can contact them to secure your short-term rentals in Cape Town or Johannesburg. Scroll to the end of this blog post for IGrow’s short-term letting properties for sale.
At IGrow, we offer our investors a variety of investment opportunities, from traditional long-term buy-to-let units to high-potential short-term rentals listing options. We uncovered Cape Town’s booming short-term rentals market in our Podcast Review blog post earlier this month.
Perfect Hideaways as a listing site
Perfect Hideaways has been key to showcasing Kinsail Beach Villa to the right audience. They vet guests, help you set up competitive rates, manage your bookings, and offer high-end marketing exposure, including organising social media influencer stays. For Carina Kenny, listing her property with Perfect Hideaways has ensured she can attract both international and local guests at prime rates. They cover everything from marketing, guest vetting, bookings, and managing payments.
With Kinsail Beach Villa, Carina has transformed a well-loved family home into a thriving short-term rental investment property that aligns with her long-term financial goals.
I interviewed Carina Kenny to explore her short-term rental investment journey.
INTERVIEW WITH CARINA KENNY, SHORT-TERM RENTAL PROPERTY OWNER OF KINSAIL BEACH VILLA
Casey: What do you know about IGrow?
Carina Kenny: I’ve learned that IGrow would rather want you to invest your money in property, and then make your returns in renting out the property rather than putting your money into different funds like an annuity fund, etc.
Casey: That’s exactly it. You own a luxury short-term rental property in Langebaan, which you let out via Perfect Hideaways, called Kinsail Beach Villa?
Carina Kenny: Yes
Casey: Your insights will help IGrow investors looking into short-term rental properties.
1. Before owning Kinsail, how did you get into the world of renovating and owning a short-term rental property?
Carina Kenny: I studied Home Economics at Pretoria University, and I specialised in Interior Design, which was one of my favourite subjects.
Ever since then, I have had a love for renovating properties. And then I became involved in the restaurant business, and my job was always to remodel the restaurants. I also purchased a few properties that required renovation.
Casey: Would that be your personal homes that you would also renovate?
Carina Kenny: Yes, so I had a good background, and I had a love for renovating.
Kinsail was the house where I raised my daughter. We lived there for 12 years.
When I moved to Cape Town, instead of just leaving the house as our holiday home, I decided to do a huge renovation (because the house was about 60 years old) to turn it into a property that could generate income for me.
Casey: Where is the house in Langebaan?
Carina Kenny: It’s a beachfront property on the Langebaan lagoon. What’s lucky about having a property on the beach is that it’s a kite surfing mecca. At certain times of the year, people come in from all over the world to kite surf.
And then, when we have the flower season, guests come to see the West Coast wildflowers at the West Coast National Park.
2. What does it take to qualify your property as a Perfect Hideaways listing?
Carina Kenny: It’s quite tricky to get chosen. They select characterful houses that have spectacular locations and beautifully styled interiors, with either spectacular views or spectacular art.
And the houses must be fitted to quite a high standard. We get these lists that help us fit the house.
They sent a team to come and stay at Kisnail Beach Villa. They evaluate the property and then you hope they choose you to list on their platform.
Casey: Do you need a certain number of bedrooms?
Carina Kenny: No, they take any size of house, and my house sleeps eight guests.
3. When did you first list your property on the Perfect Hideaways website?
Carina Kenny: It was August 2023.
4. Are your guests mainly foreigners or locals?
Carina Kenny: I find that from November till the end of January, it’s mostly just foreigners.
People fly in, and they visit Langebaan. The rest of the year, it’s mostly locals.
Casey: So, during winter off-peak season, you’d find yourself with more local guests from Cape Town or Johannesburg than global travellers?
Carina Kenny: Yes.
5. When would your peak season be?
Carina Kenny: I’ve actually got quite a small peak season, but I would say it’s basically from October until the end of March.
Langebaan is very seasonal, and I think it’s due to the windy season being ideal for kitesurfers. Most visitors come to kite surf, and the area also gets a little busier during the flower season, which typically occurs from September to October.
The good thing is that in April we’ve got the Easter holidays and school holidays. Overall, I’m busy from September to April.
6. What would you say your best month for rentals has been since you listed on Perfect Hideaways?
Carina Kenny: December. There’s never been even one day open in December.
7. Do your rates change throughout the year? And does Perfect Hideaways determine a rate threshold, or is that up to you?
Carina Kenny: Yes. They guide me, and I go with it.
I have three seasons. A peak season, which is November, December, and January. And then a shoulder period and a winter season. Winter offers much lower rates than December.
Casey: Do you find that by lowering the rates in winter, it makes it easier for people and more appealing because it’s off-season?
Carina Kenny: Yes. But, I have to tell you, winter is quiet in Langebaan.
8. What is the best way for a potential guest to book a stay with you?
Carina Kenny: I do all my bookings through Perfect Hideaways. And if you Google ‘Perfect Hideaways Kinsail Beach Villa,’ they have a very easy booking system.
Their website includes beautiful pictures and a video tour of my property. The video will take you through the house and provide a fantastic idea of what you are actually booking. It also has a good description of exactly what’s in every room, what’s in the kitchen, etc.
9. What would you say to someone considering buying a short-term rental property? Is it a worthwhile investment option?
Carina Kenny: I can only actually speak for myself. It depends on the property. I’ve got a beachfront property. There’s a very limited amount of beachfront properties, and they seldom exchange hands. I’m not talking about Calypso Beach and those properties.
My property is just going to get more and more valuable. If I were to sell Kinsail today and deposit the money in the bank, I would probably earn a little more interest on my investment at the moment, as it would be a lump sum of capital.
But I have decided I want to keep Kinsail as a replacement for a traditional retirement annuity plan. It gives me an income and investment, which is the value of my house. And I will see capital growth on that because that house is going to become more profitable.
That is my approach. I’d rather keep my property. It becomes more valuable, and I have a reliable rental income from the short-term rental guests. I think in the long run I’m going to win.
Casey: Yes, that’s true. At IGrow, we promote the idea of buying and keeping your property because it will appreciate with time. Your investment grows as the years go by. The capital growth and equity go up, as you say. So, it does sound like quite a worthwhile investment to make.
10. What input is required from the owner?
Carina Kenny: As an owner, you must choose your property wisely.
You have to decide how much money you are going to spend on renovating versus how much money you can make. So, you’ve got to get that balance right.
And then you’ve got to decide what it is that you want to create. With Perfect Hideaways’ short-term rentals, you have to spend quite a lot of money to create something spectacular. However, it’s not wise to spend too much, as this can lead to problems with the return on your investment.
You need to conceptualise an idea of what your guest house is going to present. Is it a cosy mountain retreat? In my case, I created a beach house.
11. Would you recommend hiring a property manager rather than managing a property yourself?
It depends on the property. My property requires very specialised management. This is because it has a very sophisticated, high-end interior that requires expert cleaning and management oversight.
It also depends on the turnover that you receive from your rental. Kinsail receives high rates. So, I was in a position to employ a full-time property manager. That makes it a lot easier for me.
12. Was she appointed by Perfect Hideaways or did you choose her?
Carina Kenny: I chose her.
END OF PART 1 OF THE INTERVIEW
IGrow Wealth Investments offers high-demand short-term rental properties
IGrow has 2 properties with short-term rental potential in Cape Town, with more coming to market soon!
The Kingsley, Mowbray, Southern Suburbs, Cape Town
The Kingsley, in Cape Town, is a student’s paradise and a short-term let option perfect for graduate students from overseas or other parts of South Africa. The complex offers 1-bedroom 1-bathroom apartments from R1,119,000.
The Kingsley is only 750m from the University of Cape Town main campus and also close to Amazon headquarters. It’s also nearby Cape Town’s hiking trails, idyllic beaches, and the buzz of CBD restaurants and nightlife. The apartments are both modern and secure. The short-term letting option available at these units offers excellent rates, being situated in a prime location in Cape Town’s Southern Suburbs.
Mzuri Estate, Somerset West, Cape Town
Mzuri Estate, situated in Somerset West, is a short- or long-term letting oasis, with beautiful mountain and sea views. The estate provides 3-bedroom terrace homes and Luxury 3 & 4 Bedroom free-standing homes, from R2,610,300. Mzuri offers the best of luxury, security and comfort, making it an ideal choice for travelling families, businesspeople, and digital nomads.
Contact an IGrow Real Estate International Specialist if you’re interested in an investment property at Mzuri Estate, as we have limited plot-and-plan options still available.
IGrow has a short-term rental option available now in Johannesburg
The Residency, Hurlingham, Sandton, Johannesburg
The Residency, a recent launch in Hurlingham, Sandton, Johannesburg, has premium short-term rental investment opportunities. There are fully furnished, 2-bedroom, 2-bathroom apartments from R1,495,000. The building was originally used as a hotel. Units at The Residency are available to purchase by investors for either short or long-term rentals.
The Residency is found near Sandton City centre, which means your guests can enjoy restaurants nearby, sports facilities in the area, and luxurious spas in close proximity. Excellent nightlife and spectacular shopping malls are all found nearby too. It’s just a quick Bolt or Uber drive to the Gautrain Sandton station for international guests and business travellers who need to access Sandton’s business district or Oliver Thambo International Airport. It’s found near Wanderer’s cricket stadium and several of the country’s top boarding schools for visiting parents.
What’s next?
In the second post in this series, I’ll continue the interview with Carina. So far, Carina’s insights are a testament to the excellent ROI potential of short-term rentals in South Africa.
For Carina, success in short-term rentals listings lies in:
- selecting a property in the right location
- understanding the needs of modern travellers
- ensuring your property is managed meticulously
- listing with the right platform
She shows us that short-term rentals not only offer excellent rental income but also add a dimension of flexibility and resilience to an investor’s portfolio.
Book a free consultation with an IGrow property investment specialist today, and let’s secure the right property investment for you!
