Although the residential rental property market has remained resilient in recent quarters despite the financial stress consumers are under, the number of tenants in good standing deteriorated in the first quarter of 2023 in all provinces. Property investors need to keep a close eye on the financial health of consumers and their ability to keep paying their rent. TPN’s Squat Index, defined as the number of tenants who have fallen into a category of non-payment while still occupying the property, has seen an increase in the last two quarters. Right now, four out of every one hundred tenants are classified as squatting.
The Western Cape are currently still the most committed to paying their rental while tenants in KwaZulu-Natal have the highest number of squatting tenants, with Gauteng only marginally behind them in the number of tenants that qualify as squatting. Our current economic landscape means that the risk of a defaulting tenant is potentially more likely. The right tenant in the right rental bracket is gold right now! Read the full report for the industry insights and the latest TPN residential rental data defined.
