Even though townships have historically been perceived as areas with limited resources and opportunities, with the right approach, they can be transformed into vibrant, functional, and attractive communities. Making a township property attractive doesn't only uplift the area, it can also translate into greater profitability for property entrepreneurs.

As someone who has spent years working in urban development, I have seen firsthand the potential that lies within our townships. By developing properties with care and with their tenants’ needs top of mind, property entrepreneurs developing in the townships can reap the benefit of offering quality real estate. For instance, while rentals for affordable housing are often around R2 500, high quality township properties can earn between R3 500 to R4 500 for an apartment.

In fact, within the affordable accommodation sector, uMaStandi has observed that tenants are prepared to pay an additional R1 000 to R2 000 for properties offering sought-after features.

It is extremely important that property entrepreneurs bear in mind that their tenants are people first and cater to them accordingly. There is some psychology behind creating a property that is not just four walls and a ceiling, but is an attractive, livable space. Tenants, as all people do, want a haven from the world and a place that they can feel safe and happy in. Having a home that is of higher quality can fill tenants with a sense of achievement and pride.

Offering tenants a place that goes beyond meeting their basic needs for survival and security, but their emotional needs as well, makes it more likely that they will stay in their residence for a longer term, thus ensuring greater retention and less tenant churn.

With this in mind, there are several key factors in properties that command higher rentals.

For starters, in these properties, size matters - it seems that unit sizes of 25 square meters are the sweet spot for bachelor or one-bedroom units, allowing renters to enjoy a larger queen-sized bed and entertainment area, as well as a desk. And be sure to use the space well.

An effective way to make any unit more attractive is by using natural lighting. Build with large windows in the right places, particularly in bedrooms and lounge areas, helps bring in ventilation and light, thus elevating the living space. Additionally, high quality properties must be kept clean and well maintained. 

Secondly, having one’s own facilities and an independent kitchenette, rather than having to share a bathroom and kitchen, are significant drawcards and features that people are willing to pay a little more for.

Thirdly, think in terms of tenant convenience for utilities and facilities. Reliable water and electricity services, along with fast Wi-Fi, are similarly essential for tenant satisfaction. Safe and adequate parking is also important, especially for young professionals or those for their car is a part and parcel of their work. Furthermore, ensuring that your township property is safe and secure will make it more attractive to potential tenants. This can be achieved through well-lit streets and secure fencing.

Finally, I would encourage property entrepreneurs to invest in energy saving measures, to offset the rising costs of electricity. One way to do this is to use energy saving lightbulbs throughout the property and implement prepaid meters for electricity and water. And if geysers are shared, include a timer switch to manage the electrical demand for heating of water.

While it is certainly possible to achieve slightly higher rentals in the affordable housing space, it does come with a considerable amount of effort and intention; from planning to design, building and finishes. However, it is well worth it, not only because it makes for a higher level of profitability, but also because it uplifts the whole area, contributes to urban regeneration and enables people to enjoy a higher standard of living.