Although a property portfolio can be an alluring investment option, investors could find themselves in the proverbial pickle should tenants' behaviour infringe on the rights of others in a sectional title scheme. Property24 legal expert Lucille Geldenhuys advises landlords on how to protect their rights in a lease agreement.

The mere fact that an owner leases his property out, does not take away his obligation to the Sectional Titles Act. Therefore, if the tenant is a nuisance to others, the owner will be held accountable.

I was recently approached by the owner of a sectional title unit who is being forced by the trustees to evict his tenant. On signing the lease, the tenant did not divulge that he had previously been evicted from the same complex.

The trustees demanded that the owner declare the contract null and void, but the owner felt the tenant had done nothing to justify an eviction.

At a later stage, the trustees claimed that the tenant held a huge party that caused serious disturbance. The tenant says he merely had a braai with his fellow occupants until about 9pm.

The trustees again asked the owner to evict his tenant and fined him fifty percent of his monthly levy. This time he acceded, but the tenant indicated that he was not prepared to move.

A dispute was declared by the trustees and the owner was given a two-week period to remedy the situation.

Section 44 of the Sectional Titles Act clearly states that no section may be used for a purpose that will cause a nuisance to any occupier of another section.

Therefore I advise owners to insert a clause into a lease agreement that firstly states that the tenant will adhere to any notices of the trustees regarding unacceptable behaviour and, secondly, that the owner will have the right to recoup penalties that are imposed on him or her by the trustees as a result of such improper behaviour.

I also recommend that the lease agreement should stipulate that if the owner receives more than one written notice from the trustees in a specific year, that this will form grounds for the termination of the lease agreement.

The act further requires that disputes between owners and the body corporate must be settled by way of arbitration. If the owner feels that the trustees do not have grounds for the manner in which they are handling the situation with his tenant, he must attend these proceedings.

If the arbitrator's finding is against him, the owner will have to take steps to terminate the contract on the basis that the tenant may not permit or cause any nuisance on the premises.

For more information, send an email.

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