Most South Africans are fairly adept at stretching a pay cheque when necessary, thanks to our unpredictable economy, high unemployment rate, and skyrocketing living expenses.<\/p>\n
Of course, even the most frugal of households can only make their money go so far, so what happens when disaster strikes and your income takes an unexpected dip, leaving you with empty pockets when it\u2019s time to pay rent?<\/p>\n
\u201cThere\u2019s no doubt that South African tenants are feeling the pinch at the moment,\u201d said Jacqui Savage, of Rawson Property Group.<\/p>\n
\u201cIf you find yourself struggling to pay rent, you\u2019re definitely not alone. In fact, only 67.27% of renters this year have been able to pay on time and in full \u2013 we\u2019ve had the third-largest decline ever recorded in Tenants in Good Standing according to TPN\u2019s latest Residential Rental Monitor.\u201d<\/p>\n
Just because the situation isn\u2019t unusual, however, doesn\u2019t mean that you can safely ignore it. In fact, denial could be your worst enemy if you hope to get through your financial troubles, unscathed.<\/p>\n
\u201cNot being able to pay rent is an incredibly stressful position to be in,\u201d said Savage, \u201cparticularly if it\u2019s because of something like a retrenchment or unexpected illness in the family. The last thing most people want to do under these circumstances is share the details of their struggle with their landlord or rental agent, but keeping silent is extremely counterproductive if you\u2019re hoping to preserve a good landlord\/tenant relationship.\u201d<\/p>\n
\u201cMany landlords rely on rental income to cover a portion \u2013 or all \u2013 of their bond costs,\u201d she continues. \u201cIf rent stops coming in, those repayments might become unaffordable for them, and they could face losing their property as a result. This is obviously not ideal for either the landlord or the tenant, which is why it\u2019s in everyone\u2019s best interests to work together in the event of a financial hiccup.\u201d<\/p>\n
While it might be counterintuitive to admit financial distress to a landlord who relies on your rental income to support their property, Savage said that honesty is as the old cliche says, the best policy.<\/p>\n
\u201cIn almost all cases, assuming you have a previously good payment history, it\u2019s a safer and wiser choice for your landlord to find a way to let you to stay,\u201d said Savage, pointing out that new tenants can be a far riskier prospect than helping an old, reliable tenant over a rough patch.<\/p>\n
\u201cBy having an open and honest discussion, you have the opportunity to reach a compromise that benefits both of you.\u201d<\/p>\n
When it comes to the specifics of that compromise, the options vary depending on the nature and seriousness of the problem.<\/p>\n
“It is essential that the tenant and landlord are both on the same page from the very beginning. As soon as you realise you might have trouble meeting your rental obligations, make the call to your landlord or rental agent. That way everyone is prepared and can take the necessary steps to minimise the damage, while finding the quickest and easiest route back to a healthy financial relationship,” said Savage.<\/p>\n
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