TENANTS ON TOP
Category News
According to the latest TPN Rental Payment Monitor, the second quarter of 2013 saw the highest percentage of residential tenants in good standing since 2007. Nationally 71% of tenants paid their rent on time and in full, 4% paid within a grace period of up to 7 days, and 11% paid late. “This adds up to 86% of tenants being in good standing,” says Francois Venter, Director of Jawitz Properties.
Gauteng has the most rental accommodation, with 41% of South African households renting in the province. “The report indicates that Gauteng tenants are now on par with the national average of tenants in good standing. This is the first time since the inception of the Rental Payment Monitor.”
Another pleasing statistic from the report shows that only 6% of tenants in South Africa did not pay their rent at all. “This figure has decreased by 2% compared to the first quarter of the year,” adds Venter.
Despite non-payers decreasing, Venter says there are concerns in the bottom end of the rental market. “Nearly a quarter of tenants are renting in the below R3000 per month bracket which has the highest non-payment rate.”
On the opposite end of the spectrum, tenants paying above R25 000 are also not faring well. “Top end rentals have seen a rate of 9% of tenants not paying at all and only 57% paying on time,” Venter says.
The best paying tenants are those in the R3000 to R7000 bracket which is the largest rental bracket overall.
“Non-payers are a concern but generally more tenants are paying their rent timeously in South Africa.”
In the Western Cape 78% of tenants are paying on time, while the Eastern Cape figure is 70% and both Gauteng and Kwazulu-Natal are at 69%.
However, according to the Monitor, the continuing decline of consumer credit in good standing points to the need for ever increasing diligence in identifying quality tenants.
Landlords are able to consult Credit Bureaus for historical data on how consumers and tenants really settle their monthly accounts. “This information is most valuable to agents and landlords alike in placing tenants that are the best suited and carry less risk of non-payment or damages. Demand for rentals still outweighs supply, meaning landlords, armed with assistance from Credit Bureaus, are still able to pick and choose tenants as they please,” Venter concludes.
Author: Jawitz Website
