HouseME, a disruptive property technology company that launched in 2016 and quickly began reshaping the South African rental marketplace, has released their latest rental collection statistics showing that on-time rental collection are nearly 30% higher than the national average.
These are impressive statistics considering that credit bureau TPN recently published its latest rental monitor report, confirming a further decrease in the number of residential tenants who pay rent on time.
In spite of this nationwide declining trend, HouseME has managed to maintain a national average of nearly 83% of rent being paid on time by tenants. This is significantly higher than South Africa’s average, which according to TPN and PayProp is less than 64% of tenants. While many have attributed this in part to the VAT increase and general financial constraints in the current economic climate, it does raise questions around whether more technology is needed in the property sector to counter such declining rental collections.
So how have HouseMe managed to buck the declining trend? As a tech company, HouseME uses smart technology to vet tenants and collect rent, allowing them to work with increased precision, at scale, and for a fraction of the usual cost. Ben Shaw, founder and CEO comments: “Although many landlords will feel the pinch of South Africa’s dip in on-time rental payments, those using HouseME won’t notice it at all. This is because we offer a 3-month ‘Rental Guarantee’ which ensures that landlords are paid on time every month, regardless of when the tenant makes the payment. We pass on the benefits to our landlords in the form of our Rental Guarantee and low rates, and to our tenants by requiring only 1 month’s deposit.”