How to let your property work for you - More holiday homes in Zanzibar
New choices for tourists and homeowners.
A world-class rental scheme for holiday homes is coming to the island.
First out comes the calculator, then the sunshine. That goes for tourists as well as for investors. Whether you are holidaying in Zanzibar, investing in residential property or planning to do so, the sums have to work out. With new benefits such as the Golden Visa, the dream island has recently become more and more attractive for private real estate investment - and holiday rentals. While that is good news, a good number of new homeowners have expressed concern: “We are looking for professional ways to rent out our houses.”
Typical questions are: How much can I make renting out my holiday apartment? Who will organise everything? Will guests look after my furniture or ruin it? Every-so-often. travellers also get disappointed. While there are fantastic offers, an imagined Swahili-style paradise in Stone Town may sometimes turn out a shed of an Airbnb.
Cool like Spiers in South Africa
But better times seem to be ahead for visitors who like that extra bit of privacy on the rapidly developing island which saw about 700,000 guests last year. The global hospitality brand Valor Hospitality, established in South Africa in 2012 and managing more than a hundred properties and hotels in the US, Middle East, UK and South Africa, is entering the Zanzibar market. Valor has worked with outstanding properties: the iconic Spiers Wine Estate in South Africa, for instance, with 150 hotel rooms and private villas, and the elegant golf resort Fancourt with its two luxury hotels and popular family specials.
Two major residential schemes
“Together we will turn Zanzibar into a world-class residential destination”, said Tobias Dietzold, one of the directors of developer CPS, when announcing the new partnership in Zanzibar. Justin Arenhold, the Zanzibar representative of Valor, spoke of “fantastic returns on investment” for homeowners. Tony Romer-Lee, founder and co-owner of the company with a global 3000 staff, called the Zanzibar arrangement “ground-breaking”: “We have lots of experience in hospitality from residences to luxury hotels”, he emphasised: “We open the front door and welcome visitors with perfect service.”
The company will start by managing the two biggest residential schemes on the island: the residential leisure resort Soul in Paje with 260 apartments, and eco-city Fumba Town near the capital with potentially 500 plus rentable units, both developed by CPS. “We will manage facilities and rentals from A to Z, from estate management to marketing and booking, to placing fresh flowers on the table when guests arrive”, Arenhold said. The deal also covers new The Soul apartments in Fumba, the planned Canopy by Hilton hotel and more than hundred luxury apartments in The Burj in Fumba; the construction of the highest timber building in the world is planned to commence in 2025.
60 percent for the owner
Back to calculations. How is the new residential tourism in Zanzibar going to unfold? Contracts for The Soul in Paje include:
A rental occupancy of 65% is expected. Marketing is done through a variety of booking sites such as booking.com, Expedia, Airbnb and company websites. Homeowners can reserve their own place multiple times and as long as they want. “We want to keep everything as flexible as possible”, explained CPS director Karin Dietzold who was instrumental in shaping the arrangement.
At leisure resort The Soul in Paje, with its trademark private lagoon, Valor has already commenced its service and is presently updating the facilities. In Fumba Town the new rental management scheme with international standards is planned to start before the end of the year.
“Velvet, linen & proper service”
When private property is rented out for holidays - design, style and maintenance matter a lot. Whoever has stayed in an Airbnb with three-and-a-half glasses or a saggy mattress, will agree. What might be tolerated by budget travellers amounts to an insult once you pay a hundred dollars or more per night.
For the new Valor rental scheme in Zanzibar, each property will be evaluated. Step by step, “individual design and furnishings of apartments will be harmonised with our brand look”, Zanzibar executive Arenhold explained. “Think velvet, linen, wood and many plants”, he elaborated on interior design: “Tropical tranquillity meets urban sophistication.” Some furniture will come from local artisans and companies, he said. Daily cleaning during rentals is guaranteed.
For now, units will be offered in different rental categories based on differing interior standards. In the future, buyers will be able to purchase their holiday apartments already fully furnished. The upcoming The Soul apartments are presently on sale for Fumba Town and the spectacular apartments in the world highest timber building The Burj already provide this option. A cover-all insurance is also being prepared, as well as uniform tax arrangements.
Smart hosting
Back to renting out: The overall idea is “peace of mind for owners and top-service for guests”, said Arenhold. A special app updates owners about bookings, revenues and trouble-shooting. Lost or damaged items such as linen, towels, crockery are automatically replaced. Guests can arrive day and night, and airport transfers, excursions and babysitters can be booked – just like in a good hotel.
There is no ‘rental pool’ as in comparable private holiday properties in Spain and South Africa. Every home is rented out and accounted for individually “on a fair-share basis so that no owner is preferred over another”, the Valor manager explained.
The rental scheme in Fumba will be more varied than in Paje. “After all, Fumba Town is a town and not a resort, with many different types of apartments and houses, short and long-term rentals”, said CPS director Karin Dietzold.
