In South Africa, the process of evicting a tenant has become highly regulated. On top of the legal ramifications, there’s also the human element to consider in the current economic climate. The best option for avoiding eviction hassles for landlords is to find the right tenant from the start. Property professionals weigh in.
READ: Rights and responsibilities in rental housing – know where you stand
Stringent Vetting: A Necessity, not an Option
“Just Property's approach to tenant vetting is something we pride ourselves on,” says our CEO, Paul Stevens. “We started as a rental agency in 2001 and are probably South Africa’s oldest and largest. We know how important tenant selection is, and our thorough screening system goes beyond the traditional method of collecting payslips and running credit checks.”
Stevens attributes his group’s low tenant default ratios to robust vetting. “As a landlord, make sure your managing agent’s system is just as thorough,” he advises.
Brian van Wyk, franchisee of Just Property Midrand and Just Property Centurion, echoes this sentiment, emphasising the underestimated role of an agent in tenant vetting and rent collection.
Landlords’ Protection: A Professional Lease, Sound Legal Protocol and Insurance
Every landlord needs an informed understanding of South Africa's landlord-tenant laws and, once a tenant has been vetted, what goes into a professionally crafted lease, says Stevens. Key legislations governing this space include the Consumer Protection Act, Rental Housing Act, and the Prevention of Illegal Eviction from and Unlawful Occupation of Property Act.
The importance of tracking tenant behaviour and managing defaults diligently cannot be overemphasised.
“There are no shortcuts. When a tenant defaults, you need to act. Advise them that they are in breach and discuss possible remedies,” Stevens notes. “20 business days is the standard time given to remedy a breach. After this, the lease may be cancelled, and the property owner can apply to the courts for an eviction order. Only the sheriff of the court may remove a tenant from a property.”
Any hasty steps without the court's nod can lead to complications, says Stevens. “Keep a meticulous record, understand the Rental Housing Act, and adhere to all legal processes.”
Insurance against defaulting tenants is also a good idea.
Stevens warns landlords not to attempt to take matters into their own hands out of desperation or frustration. Resorting to tactics such as lockouts or power cuts is unlawful, and such illegal strategies often worsen the situation. Instead, lean on the experience, established systems, and access to immediate legal counsel that your managing agent can offer to alleviate these complexities.
Landlords who get emotional and attempt DIY evictions only get themselves into trouble. “Misguided actions, such as illegal property entries or accepting partial payments without proper documentation, often backfire.”
Offering a legal perspective, it's essential to highlight the false economy of landlords trying to sidestep legal channels. In their bid to save on costs, landlords often end up spending more, not just in legal fees but also in the loss of potential rent.
The key lies in immediate action and open negotiation when a tenant defaults. Many people are struggling, but most are not dishonest. In a scenario where someone has lost their job, for example, empathy and flexibility can foster a better landlord-tenant relationship and result in a win-win situation for all.
Is Outsourcing property management the way forward?
Choosing to manage one's property or hiring an expert agency is a significant decision.
- Property marketing, viewings and tenant vetting that includes the due diligence of credit and other checks before tenants can move in.
- Comprehensive contracts and advice regarding the legal obligations of landlords and tenants.
- Proactively managed rental collection and handling of defaults.
- Prompt attendance to maintenance and management issues that saves time and money.
- Clear processes, established routines, standardised documentation, regular feedback, and a high standard of maintenance contractors.
- The option of rental income insurance that covers tenant non-payment, early cancellation, and legal fees, in case of eviction proceedings.
READ: Rental disputes? | How to resolve them without incurring legal costs
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, featured in an article published in January 2023 where he shared some of the most important steps to follow when disagreements arise:
Understand your rights
One of the best ways to resolve a rental conflict is to understand the rights of either party in terms of South African law. For example, a tenant has the right not to have their person, property or residence searched without consent or prior agreement. They also have the right not to have their possessions seized without a court order and the right to privacy of communication.
On the other hand, landlords have the right to receive a prompt and regular rental payment, as well as the right to recover a debt after a court order is issued. They also have the right to terminate a lease agreement if any of the terms agreed upon are not honoured by the tenant and to claim compensation for any damages or improvements. Landlords also retain the right to receive their property back in a good state.
Utilize the Rental Housing Tribunal
When facing a deadlock, landlords and tenants can always seek counsel from the Rental Housing Tribunal (RHT). This can be more favourable than going through the costly process of taking a matter to court. In South Africa, the RHT can proceed to investigate your situation and assist you in resolving the dispute. This also means that your conflict is heard for free and you don’t require a lawyer (but you may have one present if you’d prefer).
Rental disputes are seldom easy to deal with and can be a drain on one’s time. That’s why, Goslett recommends partnering with a real estate professional to help manage the rental property on the owners’ behalf. “One of the best ways to maintain healthy rental agreements and to avoid disputes from occurring is to work with a RE/MAX rental agent who can act as the mediator between landlords and tenants and offer advice and support to both parties,” says Goslett.
Additional information: Just Property shares five tips that will help you rate as a top tenant (read the article here)
Lift That Credit Score
Landlords are not only concerned about your income. They want to see how you’ve managed financial commitments in the past, as this is a leading indicator of your ability to pay your rent on time and in full. A good credit score will put them at ease but if your credit score is not good, you may need at least six months to improve it. A credit score is calculated by the credit bureaus and looks at five parts.
- payment history (if you consistently pay on time and in full, the better your score),
- debt use (how much of the total credit available to you that you use),
- credit history length (the longer your credit history, the better your score),
- recent activity (you will score points here if you refrain from applying for more credit on a regular basis) and
- your credit mix (you’ll score more points here if you own more types of credit e.g., you have a credit card, a cell phone account, and a store account)
READ: Landlords: A guide to finding the ideal rental candidates
Additional information:
According to the Department of Human Settlements, a Rental Housing Tribunal has the authority to deal with disputes, complaints or problems between tenants and landlords in the rental housing dwellings:
- Non-payment of rentals
- Failure to refund the deposit
- Invasion of tenant’s privacy, including family members and visitors
- Unlawful seizure of tenant’s goods
- Discrimination by landlord against prospective tenants
- The changing of locks
- Lack of maintenance and repairs
- Illegal evictions
- Illegal lockout or illegal disconnection of services
- Damage to property
- Demolition and conversion
- Forced entry
- House rules
- Intimidation
- Issuing of receipts
- Municipal services
- Nuisance
- Overcrowding and health matters
In terms of section 13(13) of the Rental Housing Act 50 of 1999, a ruling of the Tribunal is deemed to be an order of a Magistrate's Court in terms of the Magistrate's Court Act, 1994.
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