The Times reports that there have been a significant drop in the number of rental tenants who are paying in full and on time. This is according to TNP, a registered credit bureau and developer of the industry’s first rental payment profile in South Africa.
TNP’s database shows that 54% of tenants were able to meet their rental commitments for the third quarter, compare to previous figures of 70%. These shocking numbers comes as a huge shock since the rental industry has seen a recent average rental drop of 2%.
According to Michelle Dickens, managing director of TNP, the 16% drop in on-time payments reflects the current economical situation and how it is affecting tenants.
Another shocking figure was released by the National Credit Regulator showing that there are 17.14 million active credit consumers, of whom 38.44% are in bad standing.
Dickens further added that the most worrying fact is that 12% of tenants are not able to meet their rental demand at all and are defaulting on their full rental payment. Dickens explained that it is important to remember that affordability is not measured by earnings alone but rather earning less expenses.
TNP’s database combines information and other sources to provide the most comprehensive behavioural profiles on tenants and prospective buyers in the property industry.
Rent property in South Africa
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