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<\/a><\/figure>\n\n\n\nA reliable collection process can help manage some of these risks, but a considerable portion of tenants in this category continue to miss payments, heightening financial uncertainty.<\/p>\n\n\n\n
Tenants in the R3,000 to R7,000 range have had more erratic payment behaviours. <\/p>\n\n\n\n
In the second quarter of 2024, only 82.17% of these tenants were in good standing, a figure slightly below the national average. <\/p>\n\n\n\n
This group also recorded a high proportion of late payments, with around 65% of tenants paying on time and in full.<\/p>\n\n\n\n
Although landlords may still collect rent from these tenants, the delayed payments can cause cash flow challenges and complicate financial planning, especially if payment delays become frequent.<\/p>\n\n\n\n
Meanwhile, a notable positive in 2024\u2019s rental market has been the steady reduction in vacancy rates.<\/p>\n\n\n\n
According to the TPN Residential Vacancy Survey for Q2 2024, the national vacancy rate averaged 5.57% in the first half of 2024, marking a 17.21% drop compared to the previous year. <\/p>\n\n\n\n
This reduction is significant, as low vacancy rates generally mean high demand for rental properties and provide landlords with greater security in occupancy. <\/p>\n\n\n\n
In fact, the first quarter of 2024 registered the lowest vacancy rate since the survey\u2019s inception in 2016, a milestone that would typically signal stability and profitability for property investors.<\/p>\n\n\n\n
However, the dual reality of low vacancy rates alongside rising squatting rates complicates this optimistic outlook. <\/p>\n\n\n\n
While landlords benefit from a greater likelihood of keeping properties occupied, an increase in tenants defaulting on rent diminishes these gains. <\/p>\n\n\n\n
Having tenants in place is only valuable if they fulfil their rental obligations. <\/p>\n\n\n\n
Without reliable rental income, landlords may find themselves unable to benefit fully from the low vacancy rate trend.<\/p>\n\n\n\n
As the TPN Squat Index shows, a growing proportion of tenants are opting to stay in properties without payment, creating a new kind of vacancy\u2014one where landlords must bear the costs without the revenue.<\/p>\n\n\n\n
Addressing this requires landlords to act promptly and carefully, ensuring that they follow legal procedures to avoid potential setbacks. <\/p>\n\n\n\n
The increase in squatting adds complexity to a market already tested by fluctuating tenant payment behaviours. <\/p>\n\n\n\n
For property owners, vigilance and effective management will be essential to navigating this challenging landscape, where low vacancy rates don\u2019t necessarily translate into financial stability.<\/p>\n\n\n\n
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