Landlords Should Be Wary of Defaulting Tenants
Dealing with tenants who default on rent payments can be a complex process for landlords. Rowan Terry, Senior Legal Counsel at TPN from MRI Software, shares key insights into landlords' rights and obligations under South African law.
In South Africa, the Rental Housing Act No. 50 of 1999 governs the relationship between landlords and tenants. This legislation outlines payment terms, rights, and obligations, supported by the lease agreement, which defines the specific terms of rent payments.
Key Elements in Lease Agreements
A lease agreement should clearly specify:
- The agreed-upon rent amount.
- The due date for rent payments (typically the 1st of each month).
- Bank account details for payment.
- Interest penalties for late payments.
- Consequences for non-payment, including lease termination or legal action.
Learn more about lease agreement requirements in this article.
When Can Tenants Legally Withhold Rent?
Tenants can only withhold rent with a court order or an order from the Rental Housing Tribunal. If a landlord breaches the lease agreement, tenants must issue a letter of demand requesting resolution. Failing this, they may cancel the lease, withhold rental, and vacate the property.
Implications of Unlawful Rent Withholding
If a tenant unlawfully withholds rent:
- The landlord can issue a letter of demand and, if unresolved, terminate the lease.
- Legal proceedings may be initiated for unpaid rent and eviction.
- The tenant’s credit profile may be adversely affected.
Handling Maintenance and Living Condition Disputes
Landlords must respond promptly to maintenance requests to ensure habitable conditions. If unresolved, tenants can issue a letter of demand. However, withholding rent without legal grounds places tenants in breach of the lease agreement.
Eviction Timeline for Non-Payment
Evictions typically take:
- 8 weeks for unopposed evictions.
- 3–4 months for opposed evictions, depending on court delays.
Learn more about the eviction process here.
Handling Rental Deposits and Utilities
Unpaid rent exceeding the deposit may be deducted, with remaining arrears pursued legally. Utility non-payment must be addressed through legal channels, as disconnecting utilities without a court order constitutes an unlawful act. Read more about rental deposits and utility management.
