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Johannesburg - The final quarter of 2013 saw a worsening in residential rental performance, marking a worrisome change in tenant payment behaviour for the first time in nearly three years.
This is according to TPN's latest Residential Rental Monitor.
"This reversal is a sudden change for landlords and property managers, who have been enjoying an unusually long period of improving rental payments,," TPN said on Monday.
"It culminated in the second and third quarter of 2013 with 86% of tenants deemed to be in good standing."
While this figure slipped in the fourth quarter of 2013 to 85%, it is noteworthy that 72% of tenants remained in the paid on time category.
Tenants who paid late dropped slightly from 10% to 9% - with a consistent 4% remaining in the grace period.
The deterioration is, however, reflected in the movement of tenants who paid late to the partially paid segment.
"This highlights a growing multitude of over-indebted consumers, who find themselves unable to make full and timeous payments on their credit and monthly living expenses," said TPN.
"The decline may be slight, but nonetheless could be seen as an early warning sign of trouble ahead."
Commercial Rental Monitor
The numbers for fourth quarter of 2013 indicate a drop-off in rent paid on time and in full.
After all, the last quarter of every year seems to be traditionally a more testing time for commercial rent collection everywhere, according to TPN.
Its Commercial Rental Monitor, which covers office, retail and industrial rentals across South Africa, showed 81% of commercial tenants in good standing for this period.
Good standing refers to the grouping of tenants combined from paid on time (57%), paid in the grace period (8%) and paid late (15%).
Overall, late payments continue to pose a challenge nationally, as nearly 1 in 4 tenants paid rent after the due date.
The most negatively affected regions are the Eastern Cape and KwaZulu Natal where more than 1 in 3 tenants are consistently late payers.
This is according to TPN's latest Residential Rental Monitor.
"This reversal is a sudden change for landlords and property managers, who have been enjoying an unusually long period of improving rental payments,," TPN said on Monday.
"It culminated in the second and third quarter of 2013 with 86% of tenants deemed to be in good standing."
While this figure slipped in the fourth quarter of 2013 to 85%, it is noteworthy that 72% of tenants remained in the paid on time category.
Tenants who paid late dropped slightly from 10% to 9% - with a consistent 4% remaining in the grace period.
The deterioration is, however, reflected in the movement of tenants who paid late to the partially paid segment.
"This highlights a growing multitude of over-indebted consumers, who find themselves unable to make full and timeous payments on their credit and monthly living expenses," said TPN.
"The decline may be slight, but nonetheless could be seen as an early warning sign of trouble ahead."
Commercial Rental Monitor
The numbers for fourth quarter of 2013 indicate a drop-off in rent paid on time and in full.
After all, the last quarter of every year seems to be traditionally a more testing time for commercial rent collection everywhere, according to TPN.
Its Commercial Rental Monitor, which covers office, retail and industrial rentals across South Africa, showed 81% of commercial tenants in good standing for this period.
Good standing refers to the grouping of tenants combined from paid on time (57%), paid in the grace period (8%) and paid late (15%).
Overall, late payments continue to pose a challenge nationally, as nearly 1 in 4 tenants paid rent after the due date.
The most negatively affected regions are the Eastern Cape and KwaZulu Natal where more than 1 in 3 tenants are consistently late payers.
