Deposits

Plot of land in Cocody*

It turned out that the seller of the plot of land I was interested in in Cocody, could not show the paperwork he claimed to have. So this is the second potential purchase I call off this year. It’s a bit frustrating, but I guess one has to be strict with the due diligence process and have patience. I’ll continue to have people to check out further plots of land in the Cocody area in the coming weeks.

Cocody

Building in Yopougon*

Now that the Yopougon building is nearing completion, there’s already been a few potential tenants seeing it and expressing interest. With a little luck I might even have it filled up without needing to post any ads, and thus not being able to answer the question of whether you can reach people who rent their main accomodation for 30€ a month through online ads.

One issue that has come up is the size of the deposit. It seems like standard procedure in the area  is a whopping 6 months’ deposit, which says a bit about the expected credit worthiness of the tenants and maybe also of the usefulness of the Ivorian legal system.

On the other hand, in Lagos in Nigeria, it seems, according to this video , that landlords can ask for the rent to be paid 2-3 years in advance. The size of the deposit or advance rent being asked is an interesting measure, the question is just what it measures. My guess is that it is a combination of the effectiveness of the rule of law/ legal system and some sort general level of trust as well as the wealth in the local area.  From what I’ve seen, within Abidjan, deposits become smaller the wealthier an area is, but still staying above West European levels even in middle class areas. It would be interesting to see if there are areas that buck this (negative) correlation between deposits and wealth.

*Yopougon and Cocody are both parts of Ivory Coast’s commercial capital Abidjan
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2 thoughts on “Deposits

  1. Craig Hitchcock

    Calculate how much it would cost you to completely refurbish the interior, repainting, replacing fittings and fitments, etc; then divide the toal by the monthy rent expected, and that gives you the value of the deposit required, in months ! Add one for an agent. If you can find a good agent, they are worth their one off, one months, rent commission!

    And by the way, studios like yours in Cocody rent out for around 50 000 CFA pm, usually with 3months rent in advance, and 5 months deposit !!

  2. Pingback: Questions batch II « Hotel Ivory

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