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Even renting gets difficult

By Staff Writer
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Even renting gets difficult

There has been some new research released by the Tenant Profile Network (TPN), which is a credit bureau, regarding rentals.

TPN do credit checks for landlords on prospective tenants.

They have a good idea of where the rental market is and how many tenants are defaulting and finding it hard to stay on top of their rental payments.

The Times looked at this research and noted stats from TPN.

Twelve percent of tenants were defaulting and unable to pay their rent, while forty six percent of tenants were only making partial payments or paying late.

This report apparently showed a massive decline from the first quarter of last year when seventy percent of tenants were paying their rent on time every time, but by the end of last year, as the financial crisis deepened, only fifty four percent of tenants were consistently paying all their rent all of the time.

This sort of problem can be seen with Carl Niehaus.

He couldn't pay his rent so he was taking loans (even if they were 'unauthorised') to pay things off.

The thing is when you take credit you pay interest on it. If this money is used to pay rent, you are getting yourself into a debt trap.

According to TPN most defaulters were in difficulty due to over extending themselves financially or renting property that costs much more than they can actually afford.

The worst defaulters were in Kwazulu Natal, at eighteen percent defaulting but only eight percent in the Western Cape.

Apparently those paying in excess of R12 000 per month in rental were the most likely to default, while those in the R3 000 - R7 000 per month bracket were the most likely to pay their rent on time and in full.

The Dispatch also picked up this story and came in with the very scary, but true headline 'More than half of all SA renters struggle to pay'.

They also had a look at the TPN report but published the five steps recommended by TPN to draw up a personal budget. Budget planning is a necessity, especially in these difficult times.

A budget can help you to know if you are living beyond your means. Don't take credit to pay off your debts unless you are intending to consolidate your debt to pay it off cheaper and easier.

Rather make sure you know exactly how much disposable income you have after deducting all of your obligations.

If you are living beyond your means it is time to cut back and take a look at those big ticket expenses, like that luxury car or designer pad.

Hey it may hurt, but you will lose much more than status if you get into a debt trap and the whole house comes tumbling down around your ears.

Just look at Carl Niehaus.

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