15 Oct 2014
"PayProp CEO, Louw Liebenberg says the report offers a far more comprehensive assessment on a potential tenant than a standard credit check, exclusively available to PayProp users. “It is increasingly clear that credit checks alone are not adequate to fully understand the extent of non-payment risk that a new tenant presents. It’s important that estate agencies and landlords seek more forward-looking indicators of affordability, to better anticipate if a tenant will be able to pay their rent in future or not,” says Liebenberg.
The PayProp Tenant Assessment Report lists all prior information as well as provides an all-encompassing look at a tenant’s current financial status and provides a rigorous assessment of the health of his or her financial status in the future.
In support of recent changes in consumer oriented regulation in South Africa, PayProp encourages their agents to share the information with their tenants. “Historically, tenants have been excluded from being able to view or manage their credit history, but landlords are now encouraged to share this assessment report with their tenants,” says PayProp Capital CEO, Colin Habberton. “We believe the Tenant Assessment Report not only offers agents and landlords an effective risk management tool, it can also empower tenants to make better decisions about their own financial circumstances.”
Referencing the amendments to National Credit Act which came into effect in April 2014, Habberton says that there is a misconception in the market regarding the so called ‘Amnesty Act’. “The new legislation is not an amnesty as commonly understood - a chance for errant debtors to have the slate wiped clean. Rather, it entails changes in the type of information that is kept on debtors, and puts the onus on credit bureaus to clean up the records of those who have repaid their debts.”
In line with recent developments in terms of the Protection of Personal Information Act, Habberton adds that a Tenant Assessment Report can only be conducted with the consent of the tenant. “Securing total piece of mind when it comes to rental transactions is vital to ensure a harmonious relationship with a new tenant. Our Tenant Assessment Report is easy to understand and provides vital information to protect the interests of PayProp agents, landlords and tenants simultaneously, at an affordable price.”