Are your tenants paying?

Are your tenants paying – On time? In full? At all?

There has been a 2% decline of tenants in good standing in Q1 of 2011 from 81% to 79% on Q2 of 2011.   15% of tenants in Gauteng defaulted on their rental payments in the 2Q. The breakdown of these figures as follows:

Paid on time: 66%
Paid late: 13%
Did not pay: 12%

The increased percentages are more than likely as a result of the mounting financial pressure on households brought about by debt, increased unemployment, price hikes in food, electricity and fuel affecting monthly expenses and thus decreasing the ability to pay rent on time/in full/or at all. The most affected price bracket are rentals under R3000 p/m with only 72% of the tenants in good standing, 58% paid on time and 18% did not pay at all.

Similarly properties priced at R12 000 p/m and up were also performing badly at 74% in good standing, 57% paid on time and 16% not paying at all.

Properties priced between R3000 and R7000 were performing much better at 83% in good standing. 70% paid on time and only 8% did not pay.

These figures are an indication that owners need to be more vigilant when selecting tenants, the safest route would be to appoint a Professional Rental Management Agent to source a quality tenant and manage the property and the tenant on a monthly basis. For more information contact: michelle@etchellsandyoung.co.za

 

Advertisement