Diligent rental payment can help credit score – expert

Over the past year, the percentage of tenants in good standing dropped from 81.52% in the first quarter to 77.61% in the fourth, according to RentMaster.

DURBAN, May 31 (ANA) – Tenants across South Africa are now able to rehabilitate their credit score and take a further step towards owning a home by diligently meeting their rental payments, according to Gauteng-based rental collection company RentMaster.

In light of the Covid-19 pandemic, tenants and landlords alike suffered under the financial instability caused by highly volatile economic conditions both nationally and internationally.

But as economic conditions slowly improve, newly implemented digital systems make it possible for tenants to regain financial momentum, explained RentMaster CEO Shanaaz Trethewey.

RentMaster is a service provider to landlords for the collection of rental payments that uses a system called TPN to record a tenant’s rental payment data. Combined with other consumer credit data, it provides a more comprehensive financial outlook.

“That is why we integrated our debit order collection service into TPN’s lease management software called RentBook, which accurately and safely records how consistently you have paid.

“This is why private landlords use us – they get the benefit of the rental collection process whilst their tenants have the benefit of payments being recorded,” Trethewey said in a statement last week.

Over the past year, the percentage of tenants in good standing dropped from 81.52% in the first quarter to 77.61% in the fourth, Trethewey said.

According to Payprops latest rental index, growth continued to decline in the final three quarters of last year. The average rental increased from R7,844 (about US$570) in quarter four 2019 to R7,854 in quarter four 2020, the report showed.

By using the TPN system, RentMaster is able to track whether or not a tenant is in good standing, which will in turn affect their credit score. The system is also able to make available the information of those tenants who stand to be evicted.

“However, unique circumstances, especially in the last year, happen, and we all want to recover from challenging financial circumstances. The best way to do so is to settle all outstanding payments as swiftly as possible and keep paying on time, every time,” Trethewey added.

– African News Agency (ANA); Editing by Yaron Blecher