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Some landlords are doing better than others

Published Sep 20, 2021

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Landlords charging rents of R4 500 to R7 000 are currently in a better position than most.

Not only are properties in this bracket most in-demand – and making up around a third of all lease agreements – but most tenants in this segment (82.76%) are in good standing, says Michelle Dickens, chief executive of TPN Credit Bureau. Of this figure, 67.67% are paying their rent on time.

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“Landlords with properties at the lower end of the market – below R3 000 a month – struggle to get their rents, with 16.08% of tenants unable to pay and a further 15.72% making only partial payments.”

She says the traditional sweet-spot segment is monthly rents between R7 000 and R12 000.

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Although this segment continued to perform well in the second quarter of this year, there is concern that affordability is acting as a key constraint in this segment while rental escalation remains in negative territory.

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