The rental market is seeing a high level of vacancies right now as the financial impact of the Covid-19 on the average South African takes its toll - giving the tenant considerable power of choice. A recent survey by TPN Credit Bureau, the largest aggregator of tenant rental payment behaviour in South Africa, has revealed what makes a good, long-standing tenant choose one rental property over another.
TPN Rental Data for Q3 highlights the hardest-hit sectors with soaring vacancies are the properties at the low-end, rentals <R3,000 pm, with 17% of properties recorded as vacant; as well as the luxury property markets, as rentals >R25,000 pm contracted by fifty percent from 1.8% market share to 0.9% q-o-q spurred on by a 23% vacancy rate.
However, no sector of the rental market has been left unscathed with double digit vacancies across the board, according to TPN. Although affordable properties in the R4,500 to R7,000 and R7,000 to R12,000 range with 10.31% and 10.34% vacancies respectively, were the least impacted.
'Priced right and secure'
Landlords who want to present a competitive rental offering might think being flexible on a deposit or offering extras like Fibre-ready might make an attractive lease agreement - but nothing beats competitive rental pricing, according to the outcome of the TPN survey which looked at 15 specific criteria shaping the needs of potential tenants.
Rental properties that are priced right and offer a sense of security were the two top priority across all rental price bands. Providing an environment which is safe and secure at no additional cost, to a very price sensitive tenant is the best thing a landlord can do right now, according to TPN Managing Director Michelle Dickens.
"The tenants don't want the added security cost, they want the landlords to solve the problem for them. While estates might provide a sense of security, the results show that it doesn't matter the type of accommodations," adds Dickens.
"If a tenant has to choose between two units within an estate and only one has burglar bars and a security gate, they will choose the one with the added security. If we can solve getting the right priced property for the tenant and give them a secure environment, we have solved 80% of what tenants are looking for."
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