Residential Rental Monitor 2022 | Q2
The TPN Residential Rental Monitor for the second quarter of 2022 reveals that residential tenants are paying their rent despite facing economic challenges, which are being exacerbated by load shedding and higher fuel prices.
The number of tenants in good standing with their monthly rental obligations improved from 80.78% in the first quarter to 82.22% in the second quarter. Tenants in good standing are those that have paid their rental in time and in full.
Tenants in the R7 000 to R12 000 and R12 000 to R25 000 rental brackets show a strong commitment to paying their rental on time, with 88% and 87% respectively in good standing. Although tenants paying between R3 000 and R7 000 – a rental bracket which makes up more than half the market – have not yet recovered to pre-pandemic levels, they continue to head in the right direction, increasing their good standing by 2% to 82.8%.
Bucking the trend, however, is the rental bracket above R25 000 with a noticeable deterioration in good standing to 77.38%. The deterioration has precedent and is partly attributable to the cyclical nature of tourism, particularly in the tourism regions. Although this rental bracket traditionally experiences a drop in the second quarter of the year, it tends to strengthen again in the third quarter.
Vacancy Survey 2023 Q3
The demand for residential rental property remains strong. Vacancies have declined nationally to 6.76% in the third quarter of 2023, the lowest since 2017. Despite a constrained economy, tenants have continued to meet their rental obligations with te…