Backyard residential rental development has become a phenomenon in low-income townships across South Africa as a source of income for those with property. While backyard flats provide valuable income and job opportunities in markets suffering from chronic unemployment, the uncontrolled manner in which they have spread in the last decade - without consideration of property law or municipal regulation - has resulted in sub-standard construction, poor living conditions and unfairly treated tenants being the norm. When done correctly, however, this remains one of the most sustainable and significant sources of income for township residents and can be incredibly beneficial to all stakeholders involved.
Bitprop’s homeowners receive 15% of the gross rental income collected monthly from the rental flats on their property; a completely new income stream that they can rely on without having invested any of their own capital. With the 15% rental payment, household income across our portfolio has increased by 63% on average.
