More tenants paying rent but rental escalations slowing in response to price sensitive consumers, says TPN
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GUEST – Waldo Marcus, Industry Principal at TPN Credit Bureau
Despite a tough economy and constrained household budgets, for the third consecutive quarter more tenants are paying their rent and the number of tenants in good standing has continued to improve.
Credit Bureau TPN’s third quarter Residential Rental Monitor reveals that in the first quarter of 2023, 81.86% of tenants were in good standing. This improved to 82.73% in the second quarter and 83.34% in the third quarter.
A tenant is classified as in good standing if all their rental obligations are met by the end of the month. These include tenants that paid on time (POT), paid within a grace period (GP) afforded by landlords, or paid late (PL) but still ensured they covered their rental payment before month end.
Waldo Marcus, Industry Principal at TPN Credit Bureau says residential property investors are being impacted by the high cost of capital, maintenance, security, municipal charges, and the downward pressure on rental returns. However, although margins are under pressure, the fact that investors have been receiving more of their rental on time will have eased some of their cashflow strains.
Despite a tough economy and constrained household budgets, for the third consecutive quarter more tenants are paying their rent and the number of tenants in good standing has continued to improve.
Credit Bureau TPN’s third quarter Residential Rental Monitor reveals that in the first quarter of 2023, 81.86% of tenants were in good standing. This improved to 82.73% in the second quarter and 83.34% in the third quarter.
A tenant is classified as in good standing if all their rental obligations are met by the end of the month. These include tenants that paid on time (POT), paid within a grace period (GP) afforded by landlords, or paid late (PL) but still ensured they covered their rental payment before month end.
Waldo Marcus, Industry Principal at TPN Credit Bureau says residential property investors are being impacted by the high cost of capital, maintenance, security, municipal charges, and the downward pressure on rental returns. However, although margins are under pressure, the fact that investors have been receiving more of their rental on time will have eased some of their cashflow strains.
