“I’ve been struggling to pay off my debt and to manage my finances. As a result, I am now under debt review. Can I still rent a property even though I am under debt review?”

The answer, in short, is yes. The process of debt review is considered to be a saving grace for those who are struggling to pay off their debt and manage their finances. Even though debt review helps you with your financial management, it is common to also feel limited by the debt review. Whilst under debt review, you can’t take out new loans, as debt review is designed to help you settle your current debt. You may, however, have additional financial concerns when under debt review, for example, the question of whether you can rent a property while under review.

Debt review is not a credit agreement itself, which means that if you are under the debt review process, you can still rent a property. In addition, there are absolutely no legal requirements that state that an individual who is undergoing a debt review, cannot rent a property or be party to a lease agreement.

It is important to remember that when you apply for a rental, real estate agents, as well as landlords, will run a full background check on your financial situation, which includes credit agreements, judgements, defaults and whether you are currently under debt review. Take note that if you are deemed unfit for the rental, it will be a result of some other factor, as real estate agents are not permitted to deny your application solely on the fact that you are under debt review.

How can you increase your chances of securing a lease agreement while you are under debt review? It is common for real estate agents and landlords to still have some concerns with regards to your debt review status. To settle these concerns, your debt counsellor may provide the real estate agent or landlord with a proof of budget that indicates that you are in fact able to afford the rental amount every month. You may also provide the real estate agent or landlord with bank statements that indicate that you can afford the rental amount. You can also offer a double deposit, or another person to co-sign the lease with you.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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Questions, and sometimes disputes, often arise between landlords and tenants regarding where the responsibility lies with the maintenance of a property. The simple answer is that tenants can generally only be held responsible for repairs/replacement on the property if the damage was caused by the tenant’s actions, or items that have a short life span, such as light bulbs.

On the other hand, alarm systems, auto gates and doors, locks, fixtures and fittings, appliances, or anything provided to the tenant are generally the responsibility of the owner to repair, unless damaged by the tenant.

The post IS THE TENANT OR LANDLORD RESPONSIBLE FOR THE WATER LEAKS? appeared first on Schnetler's Inc.

You have property and have rented it out. The tenant has decided that he can no longer afford the rent, and no letters or threats seem to make any difference to this cause. The tenant not only refuses to pay the rent, but he also fails to vacate the property.

To put icing on the cake, the law provides more protection to the tenant than ever before. It comes as no surprise that landlords feel that the current legislation enables the tenant to avoid paying rent and also offers much more protection to tenants’ interests and rights than to those of the landlord.

Times have changed, and to simply replace the locks of the premises will offer no quick solution. In reality it is very difficult to evict unlawful tenants rightfully from the property, and therefore it is very important for landlords to use the prescribed procedures as contained in the PIE Act.

In short, the Prevention of Illegal Eviction from Unlawful Occupation of Land Act (PIE) is described as legislation that aims to protect both the tenant’s and the landlord’s interests and rights simultaneously. This legislation prohibits not only unlawful eviction, but also allows for legitimate expulsion of unlawful tenants. 

Procedures as prescribed by PIE

Firstly, it is important to cancel the lease due to non-payment, as per the notice period prescribed by the lease agreement, or with one calendar month’s notice in accordance with the common law.

An ex parte application (an application without notice to any party) must be brought at the appropriate court in order to obtain the necessary permission from the court to initiate PIE procedures. This application is brought by way of two notices supported by a sworn affidavit.

The affidavit must allege the following:

1. Unlawful occupation;
2. Reasons for the requested eviction; and
3. Why it is just and equitable to evict the unlawful occupant.

Once the application has been issued, the sheriff of the court serves notices, advising of intention to institute action, on the local municipality, the unlawful occupier and on all those holding title under him. The local municipality as well as the unlawful occupant has to be given 14 days’ notice of this hearing.

On the day of the hearing, the unlawful occupier will be given the opportunity to show good cause as to why an eviction order should not be granted. The court will only grant an eviction order after considering the relevant circumstances as well as what is deemed as just and equitable. The unlawful occupier may rely on special circumstances to avoid immediate eviction.

In practice, courts have regard for the following:

1. the rights of elderly persons;
2. children;
3. disabled; and
4. households headed by a woman.

However, the court has wide discretion to grant an appropriate date on which the unlawful occupant has to vacate the property, and a date when the actual eviction order is to be effected.

In general, the PIE procedures are described as lengthy, and depending on the circumstances it often takes a long time before the unlawful occupier actually vacates the property. During this time the property owner does not receive an income from his property whilst still being required to pay the bond.

Landlords… Instead of allowing the unlawful occupier to frustrate you to the point where you want to break someone’s legs, rather take a piece of the PIE, and make it your first priority to evict the tenant from your property.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice.

The post A FINGER IN THE PIE – PREVENTION OF ILLEGAL EVICTION FROM UNLAWFUL OCCUPATION OF LAND ACT appeared first on Schnetler's Inc.