Short-Term rental profits lie in Smart Property Management

• Coastal upkeep can drain 10%+ of annual rental income if not planned for
• Smart tech and preventative maintenance boost returns and protect value
• Professional management and proptech are key to long-term rental success

Six Strategies for Sustainable Success on the Atlantic Seaboard

‍From Camps Bay to Bantry Bay, Cape Town’s Atlantic Seaboard is booming. Construction cranes and high-end renovations signal a short-term rental market on the rise, driven by revived global tourism and local investor appetite.

But according to Richard Marshall, Managing Director of Nox Cape Town, owning the right property is only half the equation. The real differentiator is how you maintain and manage it, especially in the harsh coastal environment and competitive luxury space.

‍The Hidden Cost of Coastal Luxury

‍Investors often underestimate the true cost of ownership. Industry benchmarks show that property upkeep can consume 10% or more of annual rental income, with maintenance expenses alone ranging between 1–2% of the property’s value each year.

For example, an R8 million apartment may require R80,000 -R160,000 annually just to remain rental-ready and that’s before accounting for unexpected repairs.

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Marshall warns; “The investors who thrive are those who budget 8 - 10% of rental income specifically for upkeep. Those who don’t, see property values and rental yields decline over time.”

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On the Atlantic Seaboard, guest expectations are sky-high, and competition is fierce. Even small defects can lead to negative reviews, lost bookings, and revenue dips. Add salt air, wind exposure, and aging buildings, and the stakes grow even higher.

The Proptech Revolution

To manage the operational load, leading property professionals are turning to PropTech.

One standout is Boom, the world’s first AI-powered short-term rental management platform. Boom uses predictive analytics to:

• Schedule preventative maintenance based on usage patterns
• Flag likely equipment failures before they happen
• Optimise cleaning and contractor schedules
• Track guest feedback to detect and fix recurring issues
• Dynamically adjust pricing based on property condition scores

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“Boom has been a complete gamechanger,” says Marshall.

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“We’re seeing dramatic improvements in efficiency and cost control across our managed properties.”

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Platforms like Boom are no longer “nice to have”, they’re becoming essential infrastructure for profitable short-term rental operations.

Six Strategies for Sustainable Success

From managing guest experience to protecting asset value, Marshall outlines six strategies that define the most successful short-term rental investors:

1. Prioritise preventative care over reactive fixes
   Regular inspections and scheduled servicing avoid costly surprises and unhappy guests. Aim for rapid (30-minute) responses to guest issues.
2. Use digital systems to log maintenance and repairs
   Keep detailed records of repairs, warranties, and recurring faults critical for resale value and reduced long-term costs.
3. Invest in high-quality finishes and durable materials
   Premium fixtures last longer and elevate guest satisfaction, which translates into better reviews and repeat bookings.
4. Adopt smart home and green technologies
   Leak detectors, intelligent locks, climate controls, solar, and greywater systems aren’t luxuries, they’re necessities in this market.
5. Outsource to professional management services
   From daily operations to contractor coordination, expert managers like Nox ensure consistency and cost-efficiency.
6. Plan for asset depreciation
   Understand how your property and equipment lose value over time and reflect this in your financial models for better planning.

Investment Outlook

‍Cape Town’s Atlantic Seaboard remains a prime location for short-term rental investment, but the days of “buy and forget” are over. Today’s top-performing properties aren’t just well located, they’re well run.

Sophisticated systems, preventative strategies, and professional partners are now the baseline for investors looking to build sustainable, scalable rental income.

Want to learn more?

Visit https://nox.capetown/

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