Turn Township Properties into profitable, attractive investments

• Quality design and finishes can boost rentals by R1 000–R2 000 per unit.
• Tenants pay more for natural light, private kitchens, and strong security.
• Smart energy and utility solutions reduce costs and ensure tenant retention.

Introduction

Township property investment is fast becoming one of South Africa’s most promising frontiers. While historically overlooked, townships today present enormous potential for property entrepreneurs who are willing to build with quality, functionality, and tenant needs in mind.

According to Nqobi Malinga, uMaStandi Portfolio Manager for Johannesburg, the recipe for higher rentals and stronger tenant retention is clear:

“With the right planning and finishes, township apartments that usually rent for R2 500 can achieve R3 500 to R4 500, sometimes even more. Tenants are willing to pay an extra R1 000 to R2 000 for well-designed, attractive spaces.”

Six Step-by-Step factors to get higher rentals

1. Size and layout matter

Units around 25m² hit the sweet spot for bachelor or one-bed apartments. This allows space for a queen-sized bed, a desk, and a small lounge area. But it’s not just size, it’s how you use the space.

2. Maximise natural light and ventilation

‍Large windows in living spaces bring in light and airflow, transforming units into bright, appealing homes. Tenants associate this with quality and comfort.

3. Offer private facilities

‍Independent kitchens and bathrooms are major drawcards. “People are willing to pay more for privacy and convenience,” Malinga notes. Shared facilities are increasingly less attractive.

4. Ensure reliable utilities and connectivity

‍Stable water, electricity, and fast Wi-Fi are now non-negotiables, especially for young professionals. Safe parking and secure fencing further increase desirability.

5. Prioritise safety and security

‍Well-lit communal areas, gated access, and proper fencing create peace of mind for tenants – a key factor in long-term rentals.

6. Invest in energy-saving solutions

‍Prepaid meters, energy-efficient lightbulbs, and geyser timers reduce costs and improve sustainability. This benefits both tenants and landlords.

Summation

‍Township properties don’t have to be basic. When designed with tenant psychology in mind, safety, pride, comfort, and convenience, they become homes people aspire to live in.

As Malinga concludes:

“It’s not just about building walls. It’s about creating spaces where people feel safe, proud, and willing to pay a premium. Doing so not only boosts rental income but uplifts communities and contributes to urban regeneration.”

Township property investment, when approached with care and intention, is not just profitable, it’s transformative.

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