Luxury property rentals above R25 000 per month in the Western Cape had a good standing of just under 80%. However, this category had the highest percentage of tenants who paid in a grace period at 5.94%.
From a provincial perspective Western Cape, specifically, Cape Town is performing well and has the second-best number of tenants in good standing at 85.99% behind the Northern Cape's 87.76%. Escalations are also back in positive territory and property prices in Cape Town are healthy.
The rental market may see an increase in risk as more consumers come to rely on part-time income streams to address the rising cost of living. It will become increasingly difficult to rely solely on employment status to determine tenant risk in the foreseeable future as tenants require innovative new ways to make and supplement their incomes.
The key to successful property investments will be to select the right location, find the right tenant and ensure that they remain prompt payers while at the same time managing and minimising costs as far as possible.
Our 4 step vetting process at ABC International Real Estate has proven to be successful as 98% of placed and managed tenants have paid within the stipulated period.
See our Landlords Guide for details and pricing should you be interested in placing your property on the rental market with us.