Bad tenants on the rise - Rent-Rite Blog

Bad tenants on the rise

Bad tenants on the rise

It is scary but true, more and more tenants in South Africa are not paying all their rental fees.

With the gradual increase in interest rates, it has boosted the rental market. Many people simply can’t afford to pay the higher instalments or the higher deposits often demanded by the banks and are forced to rent rather than buy. this may sound like good news to investment property owners, but the risks that come from renting can be a cause for concern, and if you go by the TPN's latest residential rental monitor report, then things look really bleak on the tenant front.


According to TPN

Since 4th quarter last year, Good tenants dropped by 2.8% from 84.97% in the first quarter of this year.

It may seem low, it is still worrisome, since this in the 3rd largest deterioration to date, and these figures do not include late paying tenants, of the 82.17% good tenants only 62.27% of tenants pay on time, 4.73% pay within the grace period, while 10.17% pay late.

Partial Payment tenants are rising extremely fast to 11.79%, this shows that tenants are trying to make payments, but affordability is becoming more and more difficult.


Currently, 81% of tenants rent properties of R 7 000.00 or less a month.

Even though the TPN stats show an upward trend of tenants who rent R 3 00.00 or less, to renting R 7 00.00 per month the last 2 years, sadly this trend has reversed in the first quart of 2016.

Close to 10% of tenants who rent for  R 3 000.00 or less, did not pay their rent.

This figure just gets higher and higher every quarter. 


51.54% the Tenants who rent for R 25 000.00 or more paid their rent on time,

15.29% paid part of their rent, 9.02% did not even pay. 

The Landlords with the biggest woes were the ones that rent their properties from R 12 000.00 to R 25 000.00, this group saw a 1.81% decrease in good standing tenants.


Provinces, with their good standing tenants percentage:

Western Cape 87.94% (the highest)

Gauteng 83.89%

Free State 82.82%

KwaZulu-Natal 82.32%

North West 81.43% (the lowest)


The best way to minimise bad tenants is research and lots of it. credit records, references. This is why using a great reputable rental agency is so much better than doing it on your own, the rental agency will do all the checks to make sure you get the best tenant, they will make sure rent is paid on time, and they will do property checks regularly to protect both landlord and tenant.


- Cornell Smit