We've survived the first week of Alert Level 4, post hard Lockdown - with certain rigorous rules relaxed - and a few extended.
More business categories are now deemed “essential” and some people have been able to return to work, albeit under very strict conditions - as most normal daily activities remain prohibited or restricted.
One of the most notable changes is the extension of the movement or travel window. Previously, a once off travel window for those who needed to get back to their place of residence was allowed between 1 and 7 May. This has been extended to allow those who have signed a new lease, have to move due to an expired lease or would like to move to their new property bought before lockdown was enforced - now extended until 7 June - See the full details here: You can now move during Alert Level 4 - and these are the documents you'll need
To recap, legal expert Simon Dippennaar looks at what tenants and landlords can and can't do under Alert Level 4 of SA's risk adjustment strategy to stem the impact of the Covid-19 Pandemic.
Renting
If the lease has expired, and the tenant is unable to relocate immediately, they must continue to pay rent, and the lease agreement becomes a month-to-month lease. However, if a tenant is having difficulty paying rent (whether the lease has expired or is ongoing), due to loss of income, TPN Credit Bureau has created a rental recovery pack, containing all the documents needed to negotiate a payment holiday and repayment plan with a landlord. Landlords placed in difficulty with bond payments due to loss of rental income should contact their lenders. Almost all South African banks have relief packages in place to help beleaguered borrowers.
SEE: Credit bureaus outline State of Disaster Rental Recovery Plan to follow
What about evictions?
Here’s where there has been some movement. The moratorium on evictions introduced at the beginning of the lockdown (level 5, although we didn’t know that term then) remains. No one can be evicted from their home under level 4. However, an application for an eviction order may be brought before the courts, which are now able to hear cases and grant eviction orders. Sheriff services have resumed. The deeds office is open and consultations related to evictions will take place.
Therefore, an attorney is permitted to prepare an order for eviction, which may be granted during level 4. However, the order is suspended and cannot be executed until the last day of level 4. At this point we do not know when that is. It is also important to pay close attention to the official information that accompanies the announcement of level 3. Although we currently understand that evictions will be lawful under level 3, we’ve seen already that the final regulations may vary considerably from the draft or anticipated rules.
Be prepared
If you are a landlord with outstanding tenant issues, and you were intending to commence or had already commenced eviction proceedings prior to 27 March, now would be a good time to consult with a good eviction attorney and prepare your case. You will not be able to complete the process until such time as evictions are again permitted, but you will beat the rush that is sure to ensue when the ban is lifted. We anticipate the courts will be busier than usual, as many matters have been put on hold, so you could wait a while to have your case heard. If the grounds for eviction are non-payment of rent (prior to lockdown, not caused by it), then you will delay even further the time when you can legally replace your non-paying tenant with a paying one.
READ: Home loans, offers to purchase and deeds registration during Covid-19 | What you need to know
Don't be in a hurry to evict good tenants
If your tenant has previously been fully compliant with the lease agreement and has always paid rent on time, but has defaulted on rent payments due to the lockdown, we urge you to take a more sympathetic stance. Allow the tenant time to negotiate a plan with you. You may even consider waiving a month’s rent, as many landlords have voluntarily done. As recession bites, rental yields will be subdued, even if demand for properties is present. If it takes a month or two to find a new tenant, that is lost income, and you may even find you have to drop the rent to attract tenants. Better to accept an equivalent loss of income from a good tenant than to expose yourself to the unknown.
Seek sound eviction advice
SD Law & Associates are specialists in rental housing and eviction law. If you are a landlord and need help navigating these uncharted waters, they can provide expert assistance. If you are a tenant and are worried about your current situation, they will look into your case and advise you of your rights and your best course of action.
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