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Rental escalation is a depressed 1.56% nationally

SA rentals resizeBelieve it or not, a rental escalation of 10% per year is not legislated and, in the current financial market, is not economically feasible on a national scale.

According the latest Tenant Profile Network (TPN) statistics for Q4 2017, rental escalations nationally were a lowly 1.56%, while tenants on average pay R6,368 per month for rent (excluding electricity, water and services such as sewerage and refuse removal).

Of course every property node and type has its own unique characteristics where rental inflation may exceed the national average, and where 10% and more is totally plausible, but this is the exception and not the norm nationally.

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David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

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