Shared Property Models are reshaping SA Real Estate

Top Takeaways

• Co-living, co-leasing and co-investing offer cost-effective access to prime locations.
• Multi-let and shared ownership models drive higher yields and reduced risk.
• Clear legal agreements are vital to avoid disputes in shared arrangements.

Understanding the 3 Shared Property Models

1. Co-Leasing – Joint Tenancy, Shared Risk

Co-leasing involves two or more people signing one lease, sharing equal legal and financial responsibility.

Key Points:

• All tenants should sign a sub-agreement covering financial splits, deposits, early exits, and replacement processes.
• If one tenant leaves, a new contract must be drafted.
• Treat the agreement like a business deal – even between friends.

2. Co-Investing – Collective Ownership, Reduced Entry Costs

This model allows two or more parties to buy a property together, sharing capital, responsibilities, and profits.

Essentials to Define:

• Ownership percentages and who contributes what.
• How profits, losses, maintenance, and tenants are handled.
• Exit clauses and dispute resolution mechanisms.
  Smee warns: “Too many informal arrangements end in disputes. A formal legal agreement is non-negotiable.”

3. Co-Living – Shared Space, Private Lives

In co-living setups, people share a home with private bedrooms and communal areas.
Important Agreements should include:

• Cost breakdowns for rent, utilities and services.
• House rules, cleaning duties and guest policies.
• Procedures for someone exiting the arrangement.
  “All shared households should formalise rules to avoid unnecessary friction,” says Smee.

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“Shared models are gaining traction across all age groups. With the right legal safeguards, they open the market to more South Africans.” Says Grant Smee founder of Only Realty.

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The Changing Property Landscape

With rents reaching a 7-year high and affordability still a concern, these models are unlocking flexible, lower-risk ways to enter the property market. Investors benefit from better yields in multi-let setups, while tenants access well-located homes they may otherwise not afford.

As Smee concludes:
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“Co-investing, co-leasing and co-living are not just trends, they’re reshaping how we live and invest in real estate. But they must be underpinned by planning, professionalism, and strong agreements.”