How long has the business been established?
How long has the owner had the business?
Fully describe this property and its income earning activities.
A Sectional Title Complex in Table View for sale consisting of 8 of approximately 110sqm duplexes. Each unit has 3 bedrooms, 2 bathrooms, plus a single garage. The complex is fully walled with an access gate. Erf size is 2000sqm. The units are rented on 1 Year Leases which can be renewed by existing tenants. Average rental approximately R12,500 per unit. Gross monthly rental income +- R100,000 p.m. Net Profit +- R90,000 p.m.
What is the approximate age of the buildings?
What is the zoning of the property and what can be developed thereon?
What is the erf size and the size of the buildings?
Eash unit is approximately 110sqm. Complex Erf size 2000sqm.
Is a property valuation available?
Property valuation available on request.
How does the business operate on a daily basis?
The properties are run by a Manager who has the following functions: â¢ Administration of property and tenant accounts, â¢ Advertising for tenants â¢ Screening of potential tenants â¢ Collection of rent â¢ Preparing rental agreements â¢ Liaising with contractors re maintenance of property/units when needed
Is the property being let by a letting agency?
The property portfolio is run by a Manager who is responsible for all aspects e.g. advertising for tenants, liaising with contractors re maintenance issues, collecting rent, keeping records up to date, etc.
Is a copy of all the lease agreements on the property available?
The lease agreements are on file and will be made available during due diligence.
How did the Covid-19 pandemic impact the business turnover / daily operations?
There are tenants that have given notice, but there are new tenants on a waiting list that are scaling down to more affordable accommodation.
Is the business VAT Registered?
The business is not VAT registered.
Are there up-to-date Management Accounts available?
Up-to-date management Accounts are available on request.
What percentage of the business is cash/credit?
Rental income payable monthly.
How could the income of the property be increased?
Rent can be increased.
What is the monthly rates and taxes payable to local authority?
What rental deposit has been secured from the tenants?
One month's rental deposit.
What are the main assets of the business?
The properties itself.
Monthly rental income Well located Units are old but neat
Units are old (kitchens, cupboards/wardrobes, floor-to-floor carpets)
Current COVID-19 situation impact on individuals finances Current economic climate / junk status
What is the reason for the sale?
Owner wish to return to the UK.
Why is this a good business?
Value of properties secures a good investment. Solid tenant base. All properties tenanted. Affordable accommodation always in demand.
Why is this property a good investment?
Well located on main road and direct access to MyCiti bus route.
What is the asking price?
Asking price R14m. Gross monthly rental income +- R100,000 p.m. Net Profit +- R90,000 p.m.
Annual Turnover Amount between R 500 thousand and R 6 million