Article from IEA News - 26 October 2002



1. Evicting defaulters: the saga continues A HOT topic in our industry right now is the recent Appeal Court ruling that defaulting tenants are entitled to the same legal protection as squatters when it comes to evicting them from the premises they occupy. This ruling has raised in some people's minds the spectre of defaulters enjoying months of rent-free occupation while their landlords battle to obtain the required court order to evict them. The solution to this problem, in our opinion, lies in the hands of the government, but as a pro-active professional institute, we want to be part of the solution if we can. In our September issue of IEA News, we outlined the salient points of the new process, for the information of our readers. Shortly afterwards, we convened a seminar to discuss the situation and find possible solutions to the problems which now confront landlords and managing agents. No less than 152 people took part in the seminar. They included estate agents, property owners, three attorneys, a bank official, and two representatives from the Rental Housing Tribunal and two directors from the Institute of Estate Agents. As you can imagine, with so many people taking part, it was a very active discussion. One of the attorneys pointed out that the situation is not really as bad as some reports may have led landlords and managing agents to believe. Defaulters can still be evicted: it is the procedure that has changed, rather than the principle. This is an important point to bear in mind. Law-abiding landlords and managing agents need to accept that, until such time, if ever, as the Appeal Court ruling is reversed, or the relevant legislation is amended (which the Department of Housing is reportedly considering), they have no choice but to comply with the new procedure. What is needed, therefore, are accurate and readily accessible guidelines to follow. Whose job is it to issue them? We don't know but, as a service to our members - and to anyone else who's interested - we are publishing some information on our website (www.ieasa.org.za). Another interesting point that arose - especially in view of the approaching festive season - is that occupiers of holiday homes are not protected by the new ruling. A further recommendation which the meeting made to landlords is, in addition to asking a tenant for the customary deposit in case of damage to the premises, to ask for a suretyship or a guarantee too. If the tenant defaults, the landlord can then obtain payment from the surety or guarantor while he is working through the eviction process. Credit checks are now more essential than ever: not only of the applicant/tenant but of any surety or guarantor too. The Rental Housing Tribunal is also in a position to offer expert advice and assistance to landlords and tenants. It operates under the auspices of the provincial government and therefore has powers which it can exercise. (See further Guidelines under "Pending Legislation") ~~~