Worsening economic conditions impact on rental payments

There is now no doubt that the economic conditions have deteriorated to a point where we can expect an increasingly risky time ahead for the rental industry. The pointers are clear:

• Non-, partial and late payment trends are all up according to the latest TPN Rental Monitor (ww.tpn.co.za)
• Tenants in good standing are down 2.8%
• New car sales are at an 8-year low and there has been a 20% increase in people that have fallen behind with their vehicle finance paymewnts.
• The economy is shrinking in real terms and people are loosing their work
• Interest rates will probably continue to climb for a while still