Dealing lawfully with delinquent tenants
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 industry expert Adrian Goslett.
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 19 of 1998, also known as the PIE Act. This act applies to the occupation of premises or residential property. The purpose of the act is to ensure that tenants are protected from any unlawful evictions.
This however does not mean that they can’t be evicted; it simply means the correct procedures must be followed by the landlord or managing agent.
“It is important for any landlord or investor with a rental portfolio to familiarise themselves with the PIE Act and the procedures it lays out for lawfully dealing with delinquent tenants. Although
It is important for any landlord to familiarise themselves with the PIE Act
the act was created with the tenant’s protection in mind, it does not discriminate against landlords. It ensures the eviction process is followed in the correct manner,” says Goslett.
According to the PIE Act, in order to lawfully evict a tenant, landlords have to adhere to the following process: Property law director Belinda Lewis says if by failing to pay the agreed rental amount, the tenant has breached the lease agreement the initial step would be for the landlord to send notice to the tenant informing him of the breach.
“It is for this reason that landlords must ensure their lease agreements meet all legal criteria,” advises Goslett.
Lewis notes that it is crucial that the lease agreement also falls in line with the Consumer Protection Act (CPA) in that the landlord is required to give at least 20 business days notice to the tenant to rectify the breach before the agreement is cancelled, provided the tenant does not remedy the breach within the given time frame.
If the notice period lapses without the tenant making any payment, the landlord may choose to proceed to issue a summons.
If the tenant still does not make payment after the summons has been issued, the landlord can cancel the lease agreement and 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.
“Taking the right precautionary measures from day one is imperative for landlords. 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,” says Goslett.