Property management in SA after the SWC 2010

Trying to be a player in the South African Property market is much the same as being a player on a soccer team participating in the World Cup – and if you have recently tried playing soccer you will know it is no easy task and should be reserved for those with special talents. The same can be said for trying to be a property management player in the South African market – rather leave it for those with the necessary know-how.

A few years ago many property owners in South Africa were filled with dreams of dollars and euros being thrown around at them for manipulating their properties according to the likes and tastes of all the tourists that will be flooding our streets during the World Cup (which lasts for exactly 31 days).

As with all things FIFA many contracts and regulations had to be put in place to assure some kind of control – this is where Classic Hospitality signed a deal with the infamous MATCH (FIFA’s booking agent) to assure that property companies could milk this World Cup cow for every single cent she is worth. Profit prophets were promising wealth beyond relative measure – even up to $8 000 a day (which is approximately R61 000 a day) could be made by allowing Dirk and Jan from the Netherlands to use your private property as a World Cup residence. Phew.

But what now? We’ve all heard the news of seriously declining numbers of tourists eventually reaching our shores. The figures went from an expected 500 000 tourists down to 400 000, down to 350 000. A mere 60% of hotels have received bookings (one week before the World Cup kicks off). This is not the same picture as say two years ago when loads of South Africans were renovating properties and investing in new residential properties that can be turned into a gold mine by slapping on a B&B sign in the garden and some clean sheets on the bed.

It seems that many of us were wickedly deceived by promises of enrichment through the World Cup. But here’s the catch: managing and developing property is a long term investment – a marathon. You can not react on a media buzz to invest thousands of rands in a project that has a 31 day lifespan.

So, if you are one of those home owners who spent a fortune just to loose it, may you learn the most vital lesson: property management is for property managers.