MAIN IMAGE: Paul Stevens – Just Property CEO
Editor
While sales often dominate real estate discussions, Just Property CEO Paul Stevens believes the industry overlooks one of its most powerful stabilisers: rentals. Stevens believes a robust rental portfolio is not just an add-on but a cornerstone of a healthy, future-fit agency; “Most agencies start with sales and only add rentals when the market turns,” he explains. “We did it in reverse — and it’s one of the best decisions we ever made.”
Stevens argues that rentals provide the kind of consistent income that keeps businesses resilient through fluctuating economic conditions. “Sales are cyclical,” he says, “When the economy dips or interest rates rise, transaction volumes drop. Rentals, on the other hand, provide a steady income that keeps the doors open.”
He believes that every estate agency, large or small, should treat rentals as a strategic business pillar rather than a sideline.
Changing perceptions
For years, rentals have carried a reputation as the “dirty work” of real estate — admin-heavy, low-margin, and less glamorous than sales. Stevens says that the mindset has cost the industry long-term stability.
“Yes, the margins are smaller, but when you scale, rentals become the backbone of your business,” he says. At Just Property, roughly 60% of revenue currently comes from rentals and 40% from sales. While Stevens expects that ratio to shift as sales grow, he considers a 50/50 balance ideal for most established agencies.
A healthy business, he says, is one where recurring rental income provides a safety net through slower sales cycles. “You can’t build that base overnight. You have to nurture it continuously.”
Structure and specialisation
Stevens attributes much of the sector’s rental challenges to poor structuring. Too often, agencies expect one agent to handle everything from listings and viewings to maintenance and finance. “That’s a mistake,” he says, “You need specialists.”
At Just Property, rental agents focus purely on bringing in and closing deals, while dedicated teams handle maintenance, accounts, and portfolio management. This model, Stevens explains, not only improves service delivery but also shifts public perception. “When rentals are managed professionally, both landlords and tenants benefit — and the reputation of the industry improves,” Stevens believes.
A gateway for new talent
Beyond financial stability, rentals can also serve as a vital entry point for young or inexperienced agents. “It’s very hard for a new entrant to survive six months without income while learning the ropes in sales. Rentals provide a softer entry — you can earn from your first month while gaining real-world experience.”
He believes this model makes transformation in the industry more achievable, “You’re not having to fund salaries for interns with no immediate income stream. Rentals create a bridge into the profession.”
Professionalising the rental space
Stevens is also an advocate for professionalising rental management across the board — from fee structures to training. Just Property has introduced refined administrative charges and tenant service fees to ensure rental operations remain sustainable and profitable.
“Running rentals is hard work; if you’re managing maintenance, compliance, payments, and inspections properly, you should be able to charge appropriately for that value.”
Transparent, well-structured fees, he believes, not only improve profitability but also reinforce trust between agents, landlords, and tenants.
The takeaway
Stevens’s message is clear: rentals and sales should not be seen as competing divisions but as complementary forces within a single business strategy. Agencies that neglect rentals in boom times often find themselves exposed when the market slows.
“When you need rentals to carry you through a tough cycle, you can’t build it overnight,” he says, “You have to invest in it constantly.”
For South African agencies looking to build sustainable growth, his advice is simple: treat your rental portfolio not as a backup plan but as the foundation of long-term success.
