how to evict a non paying tenant south africa

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Eviction is the likely outcome, but you can always try one last thing: Cash for Keys. In fact, youll very rarely find someone who takes good care of your property and continues to renew their lease agreement year after year. But because the eviction process can be expensive and drawn out, you dont necessarily want to file for a formal eviction. According to the CPA, landlords are required to provide a notice of at least 20 business days to their tenant to allow them to rectify the breach. Simon is committed to serving his community and the less fortunate. Most of us have cash flow issues from time to time and landlords shouldnt generally worry when a solid tenant pays a few days late now and again. Order for eviction is executed (tenant is removed). A recent Constitutional Court judgement has ruled that residents cannot be evicted if they would be left homeless. Whether its a commercial or r, Unfortunately, disputes between tenants and their landlords are very common. In South Africa, the tenant is usually given at least another 14 days to find new accommodation before the eviction order is executed carried out. This enables the landlord to prove that the tenant is in breach. Frequent inspections will keep the tenants on their toes. At worst, no progress is made, and you can continue with some other methods. If a tenant falls intorent arrears, common law grants the landlord tacit hypothec over the tenants goods on the property. advisable to engage the services of an eviction lawyer when needing to evict a tenant. After applying, the court would issue an eviction notice South Africa through the court sheriff to the tenant and the municipality who is in charge of the area. Landlords are understandably stressed about outstanding rental payments from a tenant. Step 2: Provide notice of contract breach. Log in, How to Evict Non-Paying Tenants (Lawfully) in South Africa. To learn more, see our Cookie Policy. Journalism strengthens democracy. While it can be a lengthy process to evict tenants who dont pay their rent, there are procedures in place to make sure that both the tenants and the, Integral to ensuring a return on your investment (ROI) in a rental property is finding and retaining the right tenants. Please refer to our, Top 21 rent collection towns during lockdown, How landlords can meet tenants halfway, as 24% of rental market faces distress, Real estate professionals optimistic about the future of the rental industry, Landlord/Tenant: Tips on how to avoid conflict over rental maintenance and repairs, Here are 3 steps to help you resolve rental disputes, Revamp your kitchen on a budget: Smart strategies to save money on renovations, July interest rate announcement predictions | 7 money-savvy tips for homeowners and buyers, Invest in a piece of paradise: Coastal plots for sale in Franskraal and Hermanus. Taking the right precautionary measures from day one is imperative for landlords. If you send the tenant a formal letter, and they do not pay what is due by your deadline, you can cancel the lease and ask them to move out. If your tenant hasnt paid their rent and has no plan to do so, the landlord should send the tenant a notice informing them that theyve breached the lease agreement. 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On day 21, if the breach has not been remedied, you may send a letter cancelling the lease and giving a date by which the premises must be vacated, as described above. After you have both agreed on when the payment would be made and the renter defaults, the next thing that you can do is to forward a breach of contract letter wherein you will give seven days to remedy the default and also let the renter know your intention to take further steps if nothing is done. Reference checks can be faked, so its important to screen the tenant personally and carefully. What is the eviction process? All landlords should ensure they take every precaution from the start to protect themselves and their investment. Your email address will not be published. Thecostof this will be borne by the tenant. Again, theres nothing you can do about this now, but this is the perfect opportunity to review your lease agreement and make sure its as strict and comprehensive as it can be. How to Evict a Tenant for Nonpayment of Rent - iPropertyManagement.com What Is A Squatter? Each Office Independently Owned and Operated. According to the PIE Act, the landlord will then be able to evict their tenant legally. There are three different categories of defaulting tenants. How to lawfully evict a non-paying tenant, Evictions - acting illegally can backfire, Rental dispute? Rental housing legislation is covered by several acts: Where the provisions of one are more generous, i.e. However, landlords cannot simply evict their tenant as theyre protected by the Prevention of Illegal Eviction from Unlawful Occupation of Land Act, No. Failure to do so can result in very unpleasant consequences and even criminal action. This field is for validation purposes and should be left unchanged. It is for this reason that landlords must ensure that their lease agreements meet all legal criteria and include the necessary clauses providing them with protection. Although not a legal requirement in South Africa, you would be wise to store the belongings for a reasonable amount of time, safely and securely, and allow the tenant to reclaim the items within that time frame. If this is not available some tradespeople work from cell phone numbers as they are moving around all day but are still bona fide employers ask them to send you an email from their company email address as proof of legitimacy. According to the CPA, landlords are required to provide a notice of at least 20 business days to their tenant to allow them to rectify the breach. Only then will the sheriff be lawfully entitled to proceed with evicting the tenant. If the renter refuses to leave, the court sheriff can forcibly apply the eviction process and remove the occupant's properties from the premises. Your lease agreement should have very specific language in regards to when rent is due, what the consequences for late payments are, and what responsibilities tenants have for the property itself. Section 32 allows a landlord to apply for the attachment and, in certain circumstances, for the removal of a tenants movable goods in the leased premises, in lieu of rent owed. He notes that while some landlords may have tenants who are no longer able to pay their monthly rent, tenants are still protected by the Prevention of Illegal Eviction from Unlawful Occupation of Land Act, No. South Africa has moved to lockdown Alert Level 1, as President Cyril Ramaphosa made the announcement on Thursday evening, 30 September, 2021. Your bondholder will penalise you if you default or pay late, so there is no reason why you should not remind tenants of their legal obligations to you. Any action you take upon the information presented in this article is strictly at your own risk and responsibility! Commercial Lease Eviction: Everything You Need to Know - UpCounsel What should a landlord do with a non-paying tenant? Legal Disclaimer | Tel: +27 86 099 5146 Cell: +27 76 116 0623 Fax: +27 86 269 6891 Email: simon@sdlaw.co.za, Radio House, 2nd floor 92 Loop Street Cape Town, City Centre, Regus, 4th floor, The Firs Cnr Cradock and Biermann Avenue Rosebank, 2196, Johannesburg. Be sure to ask the main tenant how many people in total will occupy the property and what their names are. Landlordsshould ensure that the lease agreement is comprehensive and in line with the Consumer Protection Act (CPA). Note: to make it a legally binding notice of breach of contract, it must be signed by the landlord or agent. Find out about the responsibilities that both a property owner and a tenant have, when it comes to renting. Theres always the chance that you raise the rent and the tenant decides to stay. Landlord applies to court to have a tenant eviction order issued to the tenant. HOW TO EVICT TENANTS WHO DON'T PAY THEIR RENT - RE/MAX of Southern Africa 713-395-9700 Step 1: Letter of Demand & Notice of Cancellation In the event that the tenant has breached his or her lease agreement, the landlord has the right to cancel the lease agreement by notifying the tenant that s/he reserves her/his right to cancel the lease agreement if the tenant fails to remedy the breach by a certain date. How do I blacklist my tenant? Check it out - ASK SOUTH AFRICA Tenants living rent-free can lead to huge problems for landlords as most rely on these payments to meet other financial obligations. They are also equipped to deal with non-paying tenants on your behalf; which also means that the relationship with your tenant does not have to become personal. This process can take six to eight months. Regrettably, it doesnt matter what the reason, the landlord needs to be paid. When dealing with residential leases, the most common reasons for eviction cases include: Non-payment of rent Essentially, the tenant will no longer fall under the protection of the agreement and will be regarded as an illegal occupier of the property and can therefore be evicted in terms of the PIE Act. Landlordsshould be thinking about how they can garner as much goodwill as possible during this time. Here are five reasons you can evict a tenant: There may be other legal grounds for evicting a tenant, but these are the most common reasons. Word to the wise: for interdicts and eviction processes, its best to use the services of an appropriately experienced attorney. Tenants dont play fair when -. Tenant property is defined as any personal possessions, owned by your tenants or their guests, that they have moved into or onto the property. Changing the locks, removing the front door, sending someone intimidating around to collect outstanding rental or persuade tenants to move, ordisconnecting utilities are all illegal. Simon Dippenaar & Associates is a general practice of attorneys offering a one-stop, comprehensive range of key legal services. Raise the Rent. Part of the time frame is dictated by legislation: to cancel a fixed-term lease you must give the tenant at least 20 business days notice to rectify the breach. -In terms of the PIE Act, an eviction order is needed to evict a tenant. Alternatively, pursuing the collection of rental arrears through the Small Claims Court is possible, so long as the rental arrears amount is less than R20000. But it is the determination of abandonment that is problematic. In South African law, unowned things are considered fair game. We have particular expertise in rental housing law and the eviction process. Join 100s of satisfied clients in choosing the eviction lawyer with a track record of success. nsure that the occupier is given enough time to vacate the property and find other accommodation before allowing the sheriff to enforce an eviction order, particularly in the case of vulnerable tenants, as noted above. An opposed eviction that results in a prolonged court case can be very expensive, costing up to R100000. Many homeowners eventually wind up with a guest or. Before entering into a lease agreement, seek advice from an experienced real estate agent or attorney to avoid unnecessary situations with your tenants. Its important to understand the distinction between cancelling a lease and evicting a tenant. Depending on where you're located, this could be 30, 60, or even 90 days. For some reason defaulting tenants often take the view that the landlord has to be sympathetic to their circumstances - after all its not their fault they lost their job, crashed their car or had to pay other outstanding accounts. It is common practice in South Africa for landlords to give tenants two weeks to find other . This will only drag things out further and cause more unnecessary complications and delays. To learn more, see our Cookie Policy. 19 of 1998 (PIE Act). For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. If the rental arrear is not substantial, e.g. If the agreement is cancelled, the tenant will no longer fall under the protection of the PIE Act and will be regarded as an illegal occupier. At best, you show the tenant that youre willing to work with them, and they improve their actions. Note that the seven days notice is the stipulated date usually contained in a lease agreement South Africa. Follow these steps to ensure your tenant verification is legitimate: Awritten leasewill prevent disputes over who said what? and will become a legal requirement when the Rental Housing Amendment Act comes into force. Informal inspections cost $150 per inspection or cost is specified in your management agreement. Another option is to raise the rent. Before any changes, renovations or whatever can be carried out on the property, the tenant reserves the right to be consulted on issues that will affect him or her as an occupant. If the unlawful occupier/s fails to be present at the eviction hearing, the court may postpone the hearing or proceed with it in his/her absence. The cost may vary depending on the sheriffs fees and whether the matter is opposed or not. A trial begins or thecourt sheriffremoves the tenants possessions from the premises. It is the landlords responsibility to ensure the tenant initials the relevant clauses where upgrade, upkeep and maintenance responsibilities are discussed. The property includes any outbuildings, such as a garage, and even the garden area. Renting out property is a business and although a landlord may sympathise with his tenant, most cannot afford to allow a non-paying tenant to remain in the property indefinitely. Another option is to raise the rent. Court rules on the eviction. If, after you have interdicted the tenant, they have still not made any effort to . This application can either be made to the Magistrate's Court or the High Court. If you cant reach them via cell phone, check the references provided when the lease was signed. Its in your interests if at all possible to avoid going to court. The global pandemic has left many in financially challenging positions. Inter-provincial travel is permitted, while public gatherings are restricted to 750 people indoors and 2 000 people outdoors. The Eviction of a Non-Tenant | Legal Beagle "Non-paying tenants may cause many problems for landlords however, it is clear that an aggrieved landlord has recourse and will not be short of options. 4. A late payment might happen by accident. -A court application which will include a notice of is motion and founding affidavit. Just as tough economic times have had their impact on the housing market and those looking to own property, it has also affected many tenants and landlords within the residential rental market, says Adrian Goslett, CEO of RE/MAX of Southern Africa. Evictions are done in terms of the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIE). In rare cases where it is proven that the tenant has made improvements to the property, effectively raising the value of the property, the landlord may be liable to pay the tenant for these improvements. While the eviction order may be granted on the date of the hearing, it is common practice in South Africa to provide the tenant with at least a month to find other accommodation. Landlord serves notice to the tenant to rectify the breach. This guide for landlords explains in simple terms the tenant eviction process in South Africa and the rental housing legislation you must comply with. Dealing with problem tenants is probably the single worst factor of being a landlord. DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. Although the tacit hypothec gives the landlord a bargaining chip, assets are not cash. The key is to make sure that you do have legal grounds to do so. The existing landlords may be keen to get rid of the tenant, and therefore give a good reference! However, if the breach is not remedied, the next step is a letter of cancellation served on the tenant by the landlord. It feels so un-American, like the bad guy is getting away with the crime, real estate investor Brandon Turner admits. While it can be a lengthy process to evict tenants who dont pay their rent, there are procedures in place to make sure that both the tenants and the landlords rights are protected. Lawsuits are expensive, time-consuming, and stressful. What to do if your tenants are not paying rent - Property24 You do have to be careful with this strategy, though. The breach clause usually provides that in the event of non-payment, the landlord has the right to take certain actions, such as claiming specific performance or cancelling the agreement. Help! My tenant hasn't paid rent | Private Property While you may succeed in evicting the non-paying tenant, eviction itself may not result in settlement of the outstanding debt. If your tenants lease is coming to an end soon, the best option you have is to not renew the lease. The first sets out the process for evicting tenants who dont play ball, and the second makes it a criminal offence for a landlord to simply cut the supply of electricity or water, change the locks, confiscate tenants belongings, or stop a tenant from having access to the property. If the application is approved, it will take between 8-10 weeks for the eviction order to be granted. 29 July 2022 by Janie Venter Barnard Inc. Can a landlord disconnect the electricity supply to the leased premises of a non-paying tenant? Then, he or she must also give you a chance to pay up the money before you can be sued. Call past landlords. This act applies to the occupation of premises that constitute a dwelling, which in other words means a residential property. Also, expected to be contained in the notice, is an instruction to vacate the property immediately. Reference check all adults who will be living in the property, not just the person signing the lease. At Alert level 3, Landlords can issue notices for eviction, but cannot enforce them. Finally, avoiding disputes is better than settling them. If there are any inconsistencies or vague words, you may have trouble pursuing legal action if something serious were to happen. 713-600-5999, 901 Mopac Expressway South, Barton Springs Rd Building 1, Suite 300, Austin, TX 78746 If you have any more unanswered questions, contact your nearest RE/MAX Office. The act applies to the occupation of premises which constitute a dwelling, which in the case of a landlord and tenant relationship would be the residential property. 5. The landlord may cancel the lease due to a breach of the rental agreement by the tenant. If the proper procedures are followed, i.e. ', What to do when the lease agreement is in breach. What date in the month should the rent be paid? If the defence is valid, a trial date is set. If the application is unopposed, it can take between 8 to 10 weeks for the eviction order to be granted. The sooner the non-paying tenant is off the property, the sooner a new occupier can be found and the income stream can start flowing again. The Magistrates or the High Court hear eviction applications and if they are unopposed, it takes between eight and ten weeks from the application until the eviction is granted. change the locks, physically remove personal property, or behave in a threatening way toward the tenant, however recalcitrant the tenant may be. Understandably, tenants will not want to see their possessions impounded and may respond more swiftly to this threat than to an interdict for payment of arrears. How do I evict a non paying tenant in South Africa? State Distribution: # of Days Notice Required for Pay Rent or Quit. According to the Consumer Protection Act (CPA), you are required to provide a notice of at least 20 business days to your tenant to allow them to rectify the breach, Goslett says. Make sure that the full bond repayment amount is always available in an accessible savings account just in case a tenant doesnt pay in time. Fortunately, all hope is not lost as there is recourse that landlords can take in order to receive their money and ensure that stress levels are not soaring. Landlords should ensure that the lease agreement is comprehensive and in line with the Consumer Protection Act ( CPA ). You are already subscribed to our newsletter! Usually, an ultimatum of 30 days is given to the tenant to move out of the premises. Copyright Private Property South Africa (Pty) Ltd. 1997 - 2023. Free Eviction Notice (Notice to Quit) Templates | PDF & Word The tenant may put forward a defence. If, on receipt of the eviction notice, the tenant still fails to vacate the property within the specified period, then the sheriff will be authorised to remove them and their belongings from the property. Rental housing law and tenants rights are covered in several pieces of legislation, and a landlord wanting to evict a tenant must follow the correct procedure. If the tenant is facing financial difficulties, you may agree on a later payment date - however, youre not obligated to offer this. Three ways to collect rental arrears from tenants If the notice is absconded, seek legal assistance. Attend the hearing. While you must follow the law, increasing rent from, say $1,500 to $1,800, may be a way to push a tenant out without taking any legal action. Be the first to get hottest news from our Editor-in-Chief, Check your email and confirm your subscription. What to include in your formal letter of demand: If the tenant fails to act on the formal letter (i.e. Below, RE/MAX of Southern Africa explains the steps landlords should take before they can issue a defaulting tenant with an eviction notice: If the agreed-upon payment date has come and gone and youve yet to receive payment, contact your tenant immediately to inform him/her that their payment is overdue. Dont let the possibility of a defaulting tenant stop you from searching for an investment property. While you might think you can get a non-paying tenant out quicker if you change the locks or defer to other intimidation tactics, the truth is that this will most likely only provide the tenant with ammunition to use against you in the court proceedings. If found guilty and convicted, the landlord may receive a fine or even face a prison sentence of up to two years. Eviction can be a long process. Stellenbosch in Cape Town is the best performing town in South Africa for rent collection during the lockdown period achieving 93%. Typically a 3-day notice is directed toward tenants, not guests. Below are the steps landlords should take when dealing with a defaulting tenant: If the agreed-upon payment date has come and gone and youve yet to receive payment, contact your tenant immediately to inform him/her that their payment is overdue. All rights reserved | Notes: However, tenants do sometimes leave unwanted items behind, and unfortunately your final joint inspection wont reveal these, as the walk-through is usually done before the tenant moves out. If the notice is absconded, seek legal assistance. How to Rid Yourself of a Bad Tenant Without the Eviction Process does not pay what is due by the time your 20-day deadline has expired), you can legally terminate the lease and ask them to leave. Seeking the advice of a reputable property management agent or attorney when entering into a lease agreement will also ensure that the landlord avoids unnecessary situations with their tenants and enjoys maximum protection, Goslett concludes. The landlordmay notchange the locks, physically remove personal property, or behave in a threatening way toward the tenant, however recalcitrant the tenant may be.