select
|

Tenants on top

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. 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 25 Apr 2018
      Whether you are a seasoned seller or new to the game, putting your home on the market is an exciting moment. To ensure you get the best possible outcome these 8 value adding additions to your home is worth the effort.
    • 25 Apr 2018
      After four years of unprecedented growth fuelled by semigration, the Southern suburbs market faced a number of challenges in 2017, including dwindling affordability and a marked slowing in house price growth with many sellers forced to lower their prices in order to secure a sale.
    • 25 Apr 2018
      Mall of Africa, is celebrating its second year of sensational success. This splendid super-regional shopping centre first opened on 28 April 2016, and has grown in popularity, performance and profile since then.
    • 25 Apr 2018
      While the role of trustee in a sectional title scheme is a voluntary and unpaid position, it is one that comes with huge responsibility. Trustees have a fiduciary duty towards their scheme, says Chinelle Hewit, Operations Manager at sectional title finance company Propell.
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK