The Tenant Profile Network (TPN) recently released their report on the state of the South African rental market as at the end of the 3rd quarter of 2010. The report shows that tenants are generally still trying to settle their household debt and to bring household expenses under control. Tenants who paid on time increased marginally to 68%, but those who paid late declined to 13%. Tenants who only made partial payments increased to 9% and 10% of tenants made no payment at all.

Tenants in the bracket from R3000 to R7000 per month were the best payers. Those in the brackets below R3000 and above R12 000 continued to show weak payment performance with only 55% in the above R12000 bracket paying on time.

Tenants in the Western Cape and the Eastern Cape continued to make their landlords happier than their counterparts in Gauteng or Kwa-Zulu Natal. The Western Cape in particular delivered the lowest percentage of non-paying tenants in South Africa at 6%.

Historically, the December and especially the January rental payment trends decline significantly due to extraordinary holiday expenses. We encourage landlords to make sure they or their property managers act swiftly to limit bad debts.

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