Rights for landlords, tenants are equal
RENTAL legislation, the Rental Housing Act and the Consumer Protection Act create an impression that the law disadvantages landlords.
It is not unusual to hear references to South African tenancy laws favouring tenants. Evicting a tenant can be problematic especially when unscrupulous tenants are determined to defend court proceedings.
Most tenants are not dishonest, they pay their rentals and perform their contractual obligations.
According to statistics compiled by the tenant profile network, in the second quarter of 2019, the best-performing tenants were in the R7 000R12 000 rental category, representing 86.93% of tenants in good standing and only 4.19% of tenants did not pay. In the R12 000-R25 000 rental category, 84.45% of tenants were in good standing. At the lower end, tenants paying R3 000 or less, non-paying tenants were the highest (14.82%), followed by the high end of the rental market of above R25 000, where non-payment was 6.66%.
Landowners use their real estate as income generating investments and rentals offer the best opportunity.
They have the option to access a wealth of information and the choice of many experienced letting agents to select good tenants and to grow the rental income. Tenants on the other hand need adequate habitable rental space and must seek out affordable rentals. This in a hostile market due to very high occupancy demands and one of the highest rental demands in Africa due to almost two-thirds of its population being urbanised.
The private sector used the myth of rent control as the reason for not investing in rental housing. Nineteen years after the abolition of rent control, the private sector needs to construct another fiction to explain its underinvestment or apathy.
Given the dismal situation of rental accommodation, most tenants have no choice but to accept leases without ever having the option to negotiate, either the rentals or the lease terms and conditions. They are also required to pay security or damage deposit before taking occupation.
While deposits are paid up front, it is refundable seven days after the accommodation is vacated in terms of the Rental Housing Act 50 of 1999.
Tenants are further burdened with lease and inspection costs. Letting agents levy a charge for inspecting the property with the tenants.
The joint incoming inspection provides an inventory list, including any defect, to establish the condition of the property and any content (e.g. if it is let furnished or party furnished) at the inception of the lease.
There are other factors that burden tenants, but what is clear is that the law, skewed in some instances as it may be, certainly does not favour tenants. The Rental Housing Act protects the rights of landlords and tenants, and provides for a dispute resolution when parties fail to fulfil their obligations.