Apparently, this is a return to normal. It used to be worse.
Some 18.4% of residential tenants in SA are in arrears on their rent, a figure that is somewhat improved from the nearly 25% recorded at the height of the Covid pandemic.
Stats like these cannot be comforting for those planning on building a property investment portfolio when nearly one-in-five are behind on their monthly rentals.Many people saw an opportunity to purchase their first property when prime interest rates dropped to 7% in 2020, but they screamed up to 11.75% in the following two years.
“If that landlord was making a healthy R1 000 per month in rental profit two years ago, they may now be incurring a R2 000 monthly loss at today’s interest rates, which the landlord is having to fund themselves,” says Martins.How Alleyroads is cornering the affordable housing marketFor reasons such as this, some 47.
“My advice is, if tenants are a bit slow in paying the rent, I would nurse them back to rehabilitation. A lot of landlords are doing this.” “The Rental Housing Act of 1999 governs the relationship between landlords and tenants in South Africa, outlining the rights and responsibilities of both parties,” says Smee.
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