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By Suren Naidoo

Moneyweb: Deputy Editor & Host of the Property Pod


How to handle a non-paying tenant during the easing lockdown

South Africa is seeing a 'slow relaxation' of Covid-19 lockdown restrictions related to the residential property market, but it’s still good news, says Michelle Dickens, managing director of TPN Credit Bureau.


Her comments followed the lockdown directions released on 7 May by Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma allowing for limited circumstances in which tenants and homeowners can move or relocate during Level 4 lockdown. This can be done until 7 June. Regarding residential evictions, Dickens said the initial hard lockdown effectively prohibited evictions. However, in terms of Level 4 and the new disaster management regulations released on 29 April, as of 1 May, landlords could apply to court to get an eviction order. “The restriction is that the eviction order may not be executed until the end of…

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Her comments followed the lockdown directions released on 7 May by Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma allowing for limited circumstances in which tenants and homeowners can move or relocate during Level 4 lockdown.

This can be done until 7 June.

Regarding residential evictions, Dickens said the initial hard lockdown effectively prohibited evictions. However, in terms of Level 4 and the new disaster management regulations released on 29 April, as of 1 May, landlords could apply to court to get an eviction order.

“The restriction is that the eviction order may not be executed until the end of alert Level 4.

“This means the tenant remains in the property and the sheriff will only be able to evict the tenant once we [have] reached the end of alert Level 4.”

Asked about tenants who could not afford to pay rent due to loss of income as a result of the lockdown, Dickens said TPN advocated the use of tenant income declaration documents. Tenants would declare what their circumstances were in terms of loss of income.

“They must provide supporting documents to prove the loss of income and they allow the landlord to contact their employer to confirm it,” she stressed.

“The lockdown is defined in terms of the regulations,” she said, adding that this meant tenants could move if their lease agreement was entered into before 30 April, or if their immovable property was transferred prior to 26 March.

“In these circumstances, where income has been lost, the tenant can then enter into a deposit utilisation or deferment agreement.

“What this effectively means is that tenant and landlord must both agree that the deposit can be used for the rent.

“The tenant further agrees that the deposit will be topped up, over a period of time, once the tenant is back in a position of earning income again.”

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