Rising lending rates have had a notable impact on bond repayments for the property market. In addition, July 2023 will bring in the Municipal tariff increases for property rates, electricity, water and other services.  This will place increased pressure on property owners to meet the cost of property ownership. 

These same increases also affect tenants who must pay high interest debts and finance charges, monthly rentals and cover municipal service charges. 

Coupled with loadshedding and unemployment rates, it is unavoidable that many property tenants may fall into breach of their lease agreements, while owners may be under pressure to deal with non-paying tenants or risk losing their properties in foreclosure. To avoid costly mistakes and unnecessarily expensive legal battles. It is critical to understand the basic principles that apply to leases and evictions: 

1. Where tenants have failed to pay rentals, the law allows landlords to recover unpaid rental and to attach a tenant’s movable property on the premises and sell them on auction to recover arrear rentals.
2. Non-payment does not cancel a lease or take away a tenant’s right to occupy property. Landlord’s must validly cancel the lease and issue a notice to vacate the property. Failure in this regard is costly.   
3. A tenant who does not vacate the property may not be legally “locked-out”. The landlord may not cut off electricity, water supply or take any other steps calculated to deprive the tenant of possession. Tenants faced with this conduct may approach Court for an order to interdict the landlord (and recover legal costs).
4. For commercial and residential rentals, landlord must obtain a Court order to evict a tenant. For residential evictions, landlords must first follow the process set out in the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act, 1998 (“PIE”) before an eviction order will be granted. 
5. There is no ideal solution for anyone faced with these unfortunate circumstances, and each case depends on its facts. At times, it is advisable to negotiate an amicable outcome with tenants, while other times call for swift and firm action. 

We assist both residential and commercial landlords and tenants to protect their rights in rental recovery and eviction claims. If your rights to immovable property are being prejudiced, contact us to protect your interests. 

DISCLAIMER:
This publication is intended for general information purposes and does not constitute legal advice or establish any attorney client relationship with the reader . Specific, tailored legal advice should always be obtained in relation to your situation. Viren and Company does not accept any liability for any losses suffered in connection with your reliance on this publication.