PROPERTY NEWS - South Africans breathed a sigh of relief when the South African Reserve Bank (SARB) announced that the repo rate was going to stay at 7%. 

 However, the predicted 0% economic growth figure casts a shadow of anxiety over the country's economic future.  

Property investors still need to be vigilant when it comes to not only managing their rental income, but have to take steps to maintain it.  

Stefan du Plessis, a managing member at Rent Protect, an innovative insurance company that offers rental income protection says, "Approximately 30% of an individual's monthly budget should be allocated to housing, 20% to their transport expenses and the remaining 50% to their cost of living, such as school fees, groceries, and savings to name a few."  

Du Plessis believes that the weak rand, despite its recent steps towards recovery, and the additional economic pressures such as the prolonged drought, are driving up the cost of living to a point where consumers and therefore, tenants, are having a tough time prioritising and changing their spending habits.  

According to the last Old Mutual Savings & Investment Monitor, only 46% of those employed in major metropolitan areas actually have a personal budget, even less have a household budget in place. The report also revealed that 2016 has been the worst year for personal saving since the 2008/9 global economic crisis. 

As any good investor knows, nothing is risk free, but Du Plessis believes that this does not mean tenants, property owners and managers cannot take steps to protect themselves. For tenants, the first step is drawing up a budget that highlights principle expenses like housing and saving. Landlords and property managers should do extensive credit checks on potential new tenants. 

'We bring you the latest Garden Route, Karoo, Hessequa news'