Latest news with #Michael-AnneAbrahams
IOL News
29-07-2025
- Business
- IOL News
One bad tenant can cost you thousands — here's how to avoid that risk
A single bad tenant can cost thousands in unpaid rent, legal fees, and property damage. That's why thorough credit checks are more crucial than ever before. Image: Freepik Landlords who fail to properly vet potential tenants risk handing over valuable assets to people who may default or damage property — and relying on a prospective tenant's word alone is increasingly risky. 'Spending a small amount upfront on these checks can help avoid costly mistakes down the line,' said Michael-Anne Abrahams, bond originator and property finance consultant at MyProperty. She noted that due diligence — such as reviewing credit reports, financial documentation and references — was crucial. With rental prices increasing rapidly, landlords faced an added challenge in ensuring that tenants could both afford the property and be trusted not to damage it. 'Renting out a property is a financial commitment, and just like banks assess borrowers before issuing loans, landlords need to assess tenants before handing over the keys,' said Abrahams. MyProperty said rental fraud remained a concern, particularly in larger cities where demand was high. Credit bureau checks helped verify key details such as identity numbers, contact information, employment history and previous addresses. With rents climbing sharply in 2025, landlords could no longer afford to make leasing decisions based solely on gut feel or references, MyProperty Homeloans pointed out. The PayProp Rental Index showed that average rentals in the first quarter reached R9 132, marking a 5.6% year-on-year increase. Despite this growth, 17% of tenants were still in arrears — although that figure was down on the prior quarter. PayProp reported that 'average rents rose by 5.2%, 6.0% and 5.5% year on year in January, February and March respectively. February's growth is a new post pandemic record, and the highest recorded since August 2017," the index said. The report also highlighted a 2.8% gap between rental growth and inflation in February and March, the widest in the current rental growth cycle. 'A single bad tenant can cost thousands in unpaid rent, legal fees and property damage. That's why thorough credit checks are more crucial than ever before,' said Abrahams. Abrahams explained that using a credit bureau was just one of several tools available. 'It's not just about historic debt or repayments. A credit report can show a landlord how a potential tenant is currently handling repayment as well,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'In some cases, we've seen applicants falsify references or employment. A credit check gives you an independent way to confirm who you're dealing with. That's peace of mind, especially for private landlords who may not have access to other verification tools," said Abrahams. Credit bureaus drew information from a national database of credit accounts — including store cards, phone contracts, and loans — updated monthly by registered credit providers. This provided a consistent basis for assessing South Africa's more than 24 million active credit users. 'Even if a tenant has no rental history, a credit bureau report will still tell you how they manage debt, whether they're up to date with payments, and if there's any cause for concern,' said Abrahams. Landlords and rental agents also frequently used platforms like Tenant Profile Network (TPN), which provided tenant rental histories. However, Abrahams pointed out that TPN data only existed if the tenant had previously rented through an agency or a landlord who reported to the system. 'Otherwise it will not return any data because the system has no record of the tenant,' she said. She recommended using both credit bureau and TPN data — with the tenant's consent — to form a comprehensive view of the applicant's financial reliability. 'If the potential tenant has no profile at all, the landlord will need to rely on other available tools and conduct a thorough financial assessment,' said Abrahams. That included carefully reviewing three to six months of bank statements, verifying declared income and expenses, confirming employment and salary directly with the employer, and ideally speaking with previous landlords to conduct reference checks. 'These steps help create a fuller picture in the absence of formal credit data,' she said. IOL Business
IOL News
24-04-2025
- Business
- IOL News
First-time buyers dominate South African property market in 2025
First-time buyers now account for 72.71% of the South African property market, reflecting increased confidence and favourable conditions for new entrants in 2025. First-time buyers now make up 72.71% of the market – an increase from 71.34% the year before – suggesting growing confidence among new entrants, according to the latest home loan stats released by MyProperty Home Loans. The statistics, comparing March 2024 to March 2025, and the results point to significant changes in the South African property landscape. The stats reveal that most notably, despite financial pressure stemming from the March National Budget, there were also some wins for homebuyers. The stats show that one of the more positive developments was the increase in the transfer duty exemption threshold. This, coupled with a reduced interest rate and zero transfer duty on properties priced below R1.2 million, has created a more favourable environment for first-time buyers compared to the same time last year. According to the data, the average purchase price for first-time buyers has risen slightly from R1,188,663 to R1,215,522. Meanwhile, the average bond amount approved jumped significantly from R1,029,192 to R1,567,694. At the same time, the average deposit required across all buyer categories also saw a sharp increase, rising from R159,471 to R352, figures align with broader market shifts. The average age of first-time buyers now sits at 39, highlighting a trend towards older South Africans entering the property market for the first time – possibly a result of extended financial constraints or a shift in life planning priorities. Another encouraging sign for buyers is the prime lending rate, which decreased from 11.75% to 11%, offering some relief on monthly repayments. Additionally, bond approval rates by applicants' banks edged up slightly, from 52.24% to 52.61%, pointing to a marginally more favourable lending climate. 'The data reflects a resilient property market with first-time buyers leading the charge,' said Michael-Anne Abrahams of MyProperty Home Loans. 'With improved lending conditions and increased consumer confidence, now is an opportune time for prospective homeowners to enter the market". With more supportive policies and shifting buyer demographics, 2025 may shape up to be a pivotal year for property in South Africa. PERSONAL FINANCE
