Landlords hammered as tenants struggle to pay
TPN also a registered credit bureau said 54% of tenants are able to meet their rental commitments compared to 70% in the previous quarter.
The rental market has seen a recent average rental price drop of two percent said the report.
Michelle Dickens, managing director of TPN said the 16% of rentals paid on time and in full clearly reflects the tight economic conditions which have negatively impacted on tenants' ability to meet their rental obligations.
Only 16% of renters pay on time and in full. I repeat 16%. That means if you have a tenant who pays you on the first of every month you're in a better position than 84% of landlords out there. Are you going to risk a good thing by raising rent and having a reliable tenant decide to leave and go to the vacant flat in the nicer block across the road?
5 comments:
not so fast..... TPN as great as they are has a very small representation , plus out of its members some do not utilise their monthly payment module....using TPN and extrapolating is rather naive - even though it suits your story
Anonymous, I don't know enough about the rental industry to challenge you - you may be right. But I do know that I have two friends currently renting out property, and both are suddenly having major issues with tenants. Both are high-end properties, 5-bed homes with 2,000 m2 grounds, and both sets of tenants are suddenly asking for extensions on rent, paying in bits and pieces, and talking about "cash flow issues". If tenants at this end of the market are struggling, doesn't it follow that it's way worse elsewhere?
BC
Bean Counter, I would say that no link ... I have one high end prop and a few mid market. High end mostly rented to business people , where as others are to normal salaried staff....if business is slow the businessman feels it a lot quicker thna salaried staff who get a salary monthly unless they get fired.... I can agree that on high end it is more likely. Also did some more checking at TPN , reading their announcement it is not as scary as it sounds here
i have two houses in the R4000 a month range
the tennants are good payers and have been for the last year and half, but if i put the rent up they will have problems finding the extra. I know what their salaries are, and they are already on the edge of affordability.
hey anon guys...it's hard to see who's who in the discussion!
maybe add a random signature at the end of each post?
anon3/steve
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