Only 37% of South African tenants can afford to pay their rent in full at present, the first-ever FlowFindings survey has revealed.
And 22% cannot pay at all. No part of the rental market has escaped affordability damage, from the high-end (rents R12 000-plus a month) to the low end (R2 000 to R3 999), says Flow co-founder and chief executive Gil Sperling.
“This is, of course, also a major risk to landlords, who are used to high-risk tenants representing just a fraction of their portfolio. Landlords who are receiving partial payments are at risk of tenants stopping the payment of rent altogether as their savings are depleted and credit lines maxed out.”
The survey also found that 42.72% of tenants are relying on their salaries to pay their rent, 30.09% their savings and 21.6% are relying on loans.