“Good tenants have found it easier to qualify for home loans than ever before and are consequently leaving their rented properties for owned properties.”
“Agents might struggle to justify raising their commission in the long term without the addition of services,” says Smuts. TPN’s latest Residential Rental Monitor, which analyses rent payment performance in Q4 2020, shows that tenants in Gauteng and KZN recorded an improvement in the payment of their rent but Gauteng still had the weakest tenant performance of the three major provinces.“However, all three provinces showed some improvement in the fourth quarter. From 80.
The Free State aside, some of the smaller provinces have seen their tenant payment performances hold up better through last year’s lockdown period. These include Limpopo, Mpumalanga, North West and the Northern Cape, while the Eastern Cape remains a “relatively good performer”, despite having weakened significantly.
She adds: “However, it’s encouraging to see that, even during one of the toughest years, only 15% of respondents considered selling their agency. In fact, just short of 80% responded that they see themselves working in the property industry in five years.” He explains further: “Stocks and shares can meltdown overnight, due to global or local shocks to the economy, but property investments tend to be more resilient with the upturns and downturns spread out over time – as seen with an earlier-than-expected rebound post the hard lockdown – so it is an asset class better suited to those who are risk-averse.”