Johannesburg, 31 Jul 2006
Due to the recent increase in interest rates, there has been a definite shift in the property market which has resulted in a downturn in property sales. This in turn, has lead to an increase in the demand for rental stock.
Tenant Profile Network (TPN) is a credit bureau database of tenant behaviour information. Michelle Dickens, Managing Director of TPN says that the profile of tenants has changed somewhat from a year ago. "We profile some 10 000 new tenants every month for 1 300 rental firms and individual subscribers nationally".
"The average rental price is R3 350 per month. Unfortunately the number of defaults is also on the increase. We recorded 7% defaulters at the beginning of the year and this has increased to 9% in August 2006. The average amount in default is 188% of the rental. This is significant as it suggest that 1.8 months` of rent is lost every year to 9% of all residential rentals."
What this means for landlords is a greater need to ensure the prospective tenant placed in a home comes with the right "credentials". TPN profiles positive tenant behaviour and records any defaulting tenants so that future landlords can be fore-warned. The database is constantly updated with details of where a particular tenant rents, what basic rent was paid, how often that tenant moved around, which rental firm or landlord they rented through and of course details on defaulting, thus making it extremely beneficial for any landlord or rental agency to subscribe and make use of TPN.
The TPN database is supplemented with a range of additional enquiries available to the TPN subscribers. TransUnion Credit Bureau, Experian Credit Bureau, ID verification, Bank Codes, Criminal Checks and Deeds Searches are amongst the services offered to subscribers. This impressive range allows any estate agent or private landlord to fully check out their potential tenant before committing to a term of property rental.
According to Dickens, the TPN system is web-based with intelligent workflow assisting the user through the process of performing their credit check enquires on the potential tenant, listing all their "accepted" tenants on the database, with the added ability to send the late paying tenant a Letter of Demand and finally giving the user the ability to list any defaulting tenants on the database.
Of course legislation has changed, and with the introduction of the National Credit Act, 34 of 2005, it now means that before any of the above enquiries can be requested through the TPN portal, the consent of the prospective tenant is required. In terms of the Act there is also an onus on the estate agent or landlord to ensure that all information submitted to the TPN database is accurate, current and verifiable. Should a default be listed, it is imperative that the estate agent or private landlord has given the tenant written notice to that effect.
"We believe the TPN offering has provided a specific and specialised solution to the property industry" says Dickens "and we believe that it will go a long way in assisting property managers and private landlords alike in ensuring a more informed tenant selection process."
For further information, contact TPN on (086) 1876 000, visit www.tpn.co.za or email info@tpn.co.za
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