New Year’s resolutions do NOT include paying the rent on time
In a recent analysis conducted by TPN Credit Bureau, statistics reveal a consistent trend. Without fail, there is a 12.5% decline in rental payment collections every January. And this is only considering the behaviour analytics of tenants who pay late – not those who partially pay or default on their payment entirely.
It could be argued that the public holiday on 1 January contributes to the average day that rent is paid being stretched to the 8th or 9th in January when, for the remainder of the year, rent is consistently paid by the 6th or 7th. If that were the case, we would see a similar trend in months like April or May where there are multiple public holidays. Interestingly, there is no such increase over the Easter holidays or any other month with significant public holidays. This phenomenon is unique only to January.
Michelle Dickens, MD of TPN, believes, “Tenants who display the classic festive season syndrome are not malicious in nature but are simply caught in a continuation of their holiday payment behaviour before reality sets in and they return to their better selves and better payment behaviour.”