28 Nov 2012
In Q3 2012, 71 percent of tenants paid rent on time, 9 percent made partial payments, 12 percent paid late and only 8 percent did not pay rent.
This is according to the Tenant Profile Network (TPN) Rental Payment Monitor Q3 2012.
According to the report, tenants rental payment performance improved in all categories across rental value brackets and regionally.
Writing in the report, TPN managing director Michelle Dickens says the 50 basis point cut in prime interest rate may have offered a small amount of relief.
However, she says the increase in unsecured lending of 36.12 percent year-on-year (y/y) and credit facilities of 43.14 percent y/y raises the concern that tenants are using credit to pay for monthly living expenses and this is unsustainable.
TPN reveals tenants at the lower end of the market – those paying monthly rentals of less than R3 000 remain the most unreliable, followed by the top end (rent above R12 000 pm) with the middle categories (R3 000 – R7 000 and R7 000 – R12000) faring best.
Regionally, the Eastern Cape (89 percent) and Western Cape (87 percent) continue to record above average collections, Mpumalanga (89 percent) and Limpopo (85 percent) similarly reflect quality tenants while Gauteng (80 percent) and KwaZulu-Natal (81 percent) continued to perform below average.
Dickens points out that of those tenants who did not pay rent, the Eastern Cape recorded (6 percent), Western Cape (6 percent), Mpumalanga (5 percent), Limpopo (5 percent) while the figure was high in Gauteng (11 percent) and KwaZulu-Natal (12 percent) indicating that tenants in Gauteng and KwaZulu-Natal are twice as likely to skip a month’s rent.
“One of the reasons identified by TPN as a possible explanation for these provincial payment trends was suggested by looking at overall credit granted to the population per province.”
Gauteng appears to be the most heavily indebted at a factor 3.95, with Eastern Cape and Limpopo the least in debt at a factor 1.03 and 0.77 respectively, she explains.
TPN says the national average rental price achieved double digit escalations at 10.36 percent y/y.
Nationally the average rental is R5 102, while Mpumalanga has the highest average rentals at R5 590, Western Cape R5 343, Gauteng R5 226, Limpopo R5 003, KwaZulu-Natal R4 829 and Eastern Cape R4 328.
Dickens notes that the Census 2011 data indicates that of South Africa’s 14 450 million households 3 612 million (25 percent) reside in rented accommodation and 77.6 percent live in formal dwellings.
Gauteng (37.1 percent) and the Western Cape (28. 9 percent) have the highest proportion of rented tenure while in the Eastern Cape (14.9 percent) and Limpopo (12.6 percent) of households live in rented homes, she adds. – Denise Mhlanga
About the Author
House for sale in Rooihuiskraal R 1 640 000
House for sale in Danville R 750 000
House for sale in Ballito R 2 295 000
House for sale in Crestview R 850 000
Apartment / Flat for sale in Honeydew R 1 600 000
Townhouse for sale in Montana R 1 160 000
House for sale in Sunset Beach R 3 250 000
House for sale in Vanderbijlpark SE3 R 1 395 000
House for sale in Sunningdale R 24 500 000
House for sale in Willow Acres Estate R 2 350 000
If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.
For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.
Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724