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Johannesburg - Residential tenants are increasingly struggling to pay their rents and more tenants paid late in the first quarter of this year.
In this quarter the percentage of tenants paying late jumped to 15% from 11% in the last quarter of last year, as shown in the latest rental payment monitor from the Tenant Profile Network (TPN).
This deterioration is especially evident in the category of rentals above R12 000 a month, where the proportion of late payers more than doubled, from 12% in the last quarter of last year, to 27%.
In this quarter 63% of all tenants paid on time, down from 69% in the fourth quarter of 2009. Overall, 10% paid a portion and 12% did not pay anything. The picture was unchanged from the previous quarter.
Some property owners are also under pressure. TPN noted that the number of property owners who manage their rental properties themselves, in an effort to reduce costs, increased in the first quarter.
First National Bank property analyst says it is still an unattractive prospect for any intending buyer in the buy-to-let market to find the difference between the rental income on the property and the mortgage payment. He says that on average 65% of a mortgage loan payment will be covered by rental income.
- Sake24.com