It’s a FACT – Fewer tenants are paying their rent on time

In the most recent Residential Rental Monitor Report for the 2nd Quarter of 2017, the latest rental trends show that there is a decrease in the number of tenants who pay their rent on time and in full – across all income brackets.

This was discussed in a recent interview with Michelle Dickens, Managing Director of TPN, on CapeTalk.

 

 

“Part of the reason why tenants are struggling to pay their rent is the increase in utility bills”

Michelle Dickens, Managing Director at TPN

 

This partly explains some trends that we have noticed in the course of 2017 . . .

  • increasing financial commitments showing up in credit reports
  • more serious rent arrears delinquency resulting in further action being required

 

 

In our opinion, and based on our extensive experience in residential rental management, there are two critical actions that need to be applied rigidly, namely . . .

Late, part, or non-payment of rent, of course, has a negative knock-on effect on a landlord’s cash flow. We recommend that all landlords should build up a ‘cushion’ of 1 – 2 months rent to cover themselves in the event that their tenants suffer a period of financial hardship.

For professional advice on residential rental management, contact us today.

 

About the Author

Shaun is the Rentals Operations Manager for the Harcourts Maynard Burgoyne Group.