How Much Rent Can a Landlord Lose From Tenant Default?
The visible loss is overdue rent. The full loss can also include legal work, vacancy, utilities, repairs and the time required to place a new tenant.
Build a simple default model
For R12,000 monthly rent, three missed months equal R36,000. Add a further month of vacancy and the rent exposure reaches R48,000 before any legal or repair cost.
Add carrying costs
Bond instalments, levies, rates, insurance, security, utilities and management fees may continue even when rent stops.
Add recovery and re-letting costs
Depending on the case, budget for lawful notices, professional advice, court work, inspections, repairs, cleaning, marketing and tenant placement.
Reduce the exposure
Vet carefully, keep a valid lease and deposit, reconcile rent immediately, maintain an emergency reserve and arrange suitable cover before arrears are known.
Protect the income behind your property investment
Request a RentalProtect quote based on your property, tenant and lease details.