Frequently asked questions.

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Q

I would like to invest. What is the next step?

A

Please reach out to us at info@bitprop.com so we can continue the conversation. Thank you for your interest and support!

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Q

Does Bitprop build in my area?

A

We currently only build in Khayelitsha, Eersterivier, Blue Downs and Kwezi Park. We have received applications from all over Cape Town, as well as other parts of South Africa and abroad, which help us determine where we should expand to in the future. However, due to limited capacity, we will only be able to respond directly to applicants who have applied for properties in the above mentioned areas. Applicants from other areas will be kept in our system so that we have your details and can contact you if we begin operating in your area.

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Homeowner FAQs
Q

Does Bitprop have an office in any of the areas in which it builds?

A

No, we don’t have offices in any of these areas. The best way to contact us is via our WhatsApp line (079 873 6273).

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Homeowner FAQs
Q

Do I need a title deed?

A

Yes. Unfortunately, the law requires formal approval from the building council, who requires that the applicant has a title deed to their property. This means that, for now, we require a title deed to be able to build. An important part of our long-term ambition is to be able to overcome this barrier and we are constantly engaging with the council and looking for innovative ways to solve this problem.

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Q

Do I qualify?

A

We are committed to expanding our reach to as many people as possible, so keep checking back here in case we have updated our criteria list. We are actively working to expand our presence to new areas of Cape Town and beyond, as well as to be able to work with people without title deeds. At the moment, to be considered, you must have: A title deed. A property in the areas in which we build. Space in your backyard for rental flats.

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Q

How long must I wait for a response after I apply?

A

Once you have submitted your application, we commit to responding to you within two weeks to let you know whether your application has moved to the next stage, or has been declined. Please note: there is no guarantee that your application will be approved, even if it has moved past the first stage. There are a number of factors we consider during the approval process.

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Q

Does Bitprop build according to council regulations?

A

Yes, all of our properties are built according to full council regulations.

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Homeowner FAQs
Q

What type of flats can I have built by Bitprop?

A

We currently only build bachelor flats, but in the future, we would like to explore 1 or 2-bedroom flats, as well as mixed-use options.

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Q

How many flats does Bitprop build on a property?

A

We have a standard building design that we use on every property, so the number of flats we build depends on how many of those ‘standard’ flats will fit on your property. Our properties range between 4 and 8 flats, depending on the space available.

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Q

Who does Bitprop use to construct?

A

We partner with a number of local companies and contractors to complete the building process. You will not be directly involved with the construction company, as we will oversee and manage the construction process. You will only need to provide access to your property for the duration of the construction process.

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Q

How long does the construction process take?

A

Once construction begins, the process takes between 6 and 8 weeks, although delays can sometimes occur due to circumstances that are out of our control like bad weather or protests.

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Q

What role does Bitprop play once the construction process is complete?

A

Once construction has been completed, we will provide you with assistance to manage your property. We collect all rent and handle deposits, provide rent agreements, insure the flats and provide reasonable maintenance as and when necessary

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Q

What support will I get to manage my property effectively?

A

Bitprop has the benefit of having worked in a similar way with many homeowners. We will provide guidance to you about how best to manage your property to ensure that all tenants are happy and that everything runs smoothly. Before construction is complete, we will provide you with educational material that will allow you to train adequately to be a property manager. Completing this training is mandatory for all homeowners, even if you have prior experience with managing a property.

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Q

Do I need to pay anything?

A

As the homeowner, you will not need to contribute any money towards the construction process, and there is no application fee. However, you will pay by providing access to your property, providing property management skills and by sharing your rental income with us for the duration of the agreement.

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Q

What is the rent sharing process?

A

The rent sharing process is how Bitprop pays for the construction process. Instead of you needing to pay anything in the beginning, we help you create an asset that can generate income (the flats) and we share the income from that until the agreement ends.

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Q

How long does the rent sharing process continue for?

A

Once construction has finished, Bitprop and the homeowner’s rent sharing agreement begins and continues for 8 years.

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Q

How much rent will be charged per flat on my property?

A

We decide, together with you as the homeowner, what the appropriate rent is for the flats we build in your area.

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Q

Who collects rent?

A

All tenants pay rent directly to Bitprop. We will pay you your portion of the rent once a month, once all payments have been processed.

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Q

How much will I get paid each month?

A

The rent is split 85/15 each month. This means that you will receive 15% of the total rent collected. This remains constant regardless of how much rent is collected. If a flat is empty, you will still receive 15% of what is collected. Bitprop uses the 85% it keeps to repay the building costs and to pay for maintenance and insurance of the flats.

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Q

Does Bitprop provide a monthly report on rent collected?

A

Yes, we will provide you with a monthly report on the rent collected and expenses incurred for your property and per flat.

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Q

Who finds tenants for my flats, and how do I find tenants?

A

As the property manager, it is your responsibility to find tenants for your property. However, Bitprop will provide assistance by advertising your property online.

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Homeowner FAQs
Q

Do I need to provide a lease agreement to my tenants?

A

Bitprop will provide lease agreements for all tenants. It is essential that all tenants sign a lease agreement.

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Q

Who keeps the tenant’s deposit?

A

Bitprop will retain the tenant’s deposit, which will receive interest for the duration it is kept by us, in accordance with law.

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Q

Do the tenants pay for their own electricity and water?

A

Yes, every flat has individual water and electricity meters that the tenants will pay for.

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Q

What happens if a tenant pays late or does not pay at all?

A

If a tenant pays late, you will not receive your portion of rent for that month. Bitprop will process payments once a month on the 7th of the month. If a tenant only pays after this, their payment will not be included in that month’s payment to you. You will still receive your portion of that payment, but it will be paid with the following month’s payment. If a tenant does not pay at all, they will receive a notice of eviction, as you will need to readvertise the flat to find a new tenant. It is not possible for them to pay with their deposit.

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Homeowner FAQs
Q

What happens if one of my flats is empty for a month?

A

If one or more flats are empty for a month, the total rent collected will be reduced. You will still receive 15% of whatever has been collected.

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