Homeowners get more in rent

Johannesburg - The average property rental price has increased by 11.5% over the past 12 months, according to the latest TPN Rental Payment Monitor.

TPN Credit Bureau says good news for property investors and property managers of all sizes throughout South Africa is that rental payment trends have continued to improve slightly through the second and third quarters of 2009.

Year-on-year figures show an improvement of 6% of tenants in good standing, with a 3% improvement from Q2 alone.

Tenants considered to be in good standing are those tenants who pay in full either on time or by the end of the month.

According to TPN, the national average of tenants who do not pay anything towards their rent had declined from 19% to 12%.

"At TPN Credit Bureau, we are of the opinion that the majority of tenants want to pay their rent on time and in full. Unfortunately the current economic climate has created external factors that have added extraordinary pressure onto many tenants' abilities to meet their entire monthly financial obligations including rent, such as retrenchments, pay cuts or shorter working weeks.

"We have nevertheless noted that property investors or managers who follow strict and appropriate tenant acquisition and affordability assessments are best placed with quality tenants and quality collections, in addition to instituting proper collection and management processes; systems, statements, communications and banking support," TPN said.

- I-Net Bridge