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Residential payments conduct worsens

Aug 14 2011 12:00 Elma Kloppers

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Johannesburg - The payment conduct of residential tenants across the country worsened in the second quarter – for the first time in 24 months.

This is attributed to growing financial stress resulting from increasing unemployment, heavy indebtedness and hikes in the cost of electricity, food and fuel.

The number of “good” tenants – those who pay in time and others who pay late but still the full amount – declined from 81% in the first quarter to 79%, according to the latest rental monitor data from Tenant Profile Network (TPN).

In all, 9% paid a portion and 12% nothing at all – more than the 10% who had not paid at all in the first quarter.

TPN managing director Michelle Dickens said tenants paying rent of less than R3 000 a month had been the worst payers in the quarter.

 
 
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