Credit bureau TPN released its Rental Monitor report on Tuesday (31 January) detailing rental statistics across South Africa.
The results were collected over a 12-month period and are based on the the full credit profile of every active tenant, every month. The purpose of the report is to provide landlords and property managers with early-warning indicators of their tenants’ financial stress.
According to the report, TPN has long documented that rental payments are a priority payment and tenants are more inclined to default on short-term credit, unsecured and secured credit, or other credit facilities before defaulting on rent.
While this past quarter’s rental payments were in line with expectations, TPN reported a concerning trend in that the the overall credit profiles of many tenants are deteriorating.
This was reflected by a 4.2% shift from an excellent/good overall credit profile into an average credit profile. As a result TPN believes this will translate to rental statistics in the coming quarters as South Africans battle to make payments.