SA Tenants - The rich get richer and the poor get poorer
Residential Rental Monitor - 2017 Q4
Tenants in good standing for the last Quarter of 2017 remained fairly flat at 83.35%. Good standing tenants are the combination of tenants categorised as paid on time (66.38%), grace period payments (5.66%) and those tenants who paid late (11.31%). It is concerning that tenants in the paid on time category declined by nearly one percent, shifting into the grace and late payment categories.
The majority of tenants (54.5%) pay between R3,000 and R7,000 per month, also previously enjoying the status of being one of the best performing tenant payment categories. Worryingly however, this category of tenant payment has started to deteriorate and now under-performs in relation to the R7,000 to R12,000 and R12,000 to R25,000 rental categories. Although still above the national average, the declining trend is cause for concern.
Tenants who pay less than R3,000 per month have taken the most significant strain where only 74.62% of tenants are in good standing and only 57.23% pay on time. Landlords in this market face a disturbing fact that 12.35% of their tenants are unable to pay any rent at all.
Courtesy: TPN - Tenant Profile Network