- In the fourth quarter of 2021 more than 80% of residential tenants in SA were in good standing, according to a report.
- At the height of the hard lockdown in 2020, only 62% of tenants paid rent on time.
- The best performing rental segment was between R7 000 and R12 000 a month.
The percentage of residential tenants in good standing has improved to 81.4% in the fourth quarter of 2021 compared to a lockdown low of about 62.43% in the second quarter of 2020.
This is according to credit bureau TPN's latest Residential Rental Monitor.
Tenants in good standing are those whose accounts have been settled in full by the end of the month, including any arrears.
The best performing rental segment was the one between R7 000 to R12 000 per month, which had 87.29% of tenants in good standing. This rental band also delivered the lowest "did not pay" number at just 4.2%.
Tenants paying a monthly rental of between R12 000 and R25 000 were the second best performing price band, with 86.10% in good standing and only 4.71% falling into the "did not pay" category. This sector of the rental market had the lowest vacancy rate of all rental bands at just 10.23%.
Luxury property rentals - above R25 000 per month - had a good standing of just under 80%.
Tenants who pay rent of less than R3 000 were struggling, with 17% of them making no payment at all. About 14.42% of units rented at below R3 000 stood vacant during that period and tenants who did not pay in the below R3 000 rental band have been increasing steadily since 2014, according to the report.
"The residential rental sector started to show real signs of renewal in the fourth quarter of 2021 with key national property indicators revealing that the sector is through the worst of the economic storm," concludes the report.
"Based on the current trajectory, a further recovery is expected during 2022. However, tenants are likely to continue to be under pressure as a result of rising interest rates, geopolitical events fanning the flames of inflation, persistently high unemployment and more recently, the floods in KwaZulu-Natal which all impact economic growth."