According to the latest TPN Residential Rental Monitor, most residential tenants (83%) remained in good standing in Q2 2024 despite constrained finances.
Despite a tough economy and constrained household budgets, more tenants are paying their rent for the third consecutive quarter, and the number of tenants in good standing has continued to improve. That said, while tenants are willing to navigate rental escalations for now, there is clearly a fine balance between residential rental vacancies and the ability of property investors to ask for higher rentals.
Property practitioners active in both the rental and sales sectors should not be too concerned despite the recent interest rate hikes as business is experiencing a slow economic recovery.
The residential rental sector started to show real signs of renewal in the fourth quarter of 2021 with key national property indicators revealing that the sector is through the worst of the economic storm.