FINANCE
additional complexity to the landlordtenant relationship , involving not only the property owner and tenant but also the body corporate and trustees . In complexes , issues with tenants include not just nonpayment but also their failure to comply with the rules .
Owners who rent out sectional title units must be ultra-vigilant and screen tenants thoroughly because they will take the rap for tenants ’ bad behaviour , and may foot the bills , cautioned Constas , who is a director at BBM Law . “ When it comes to a sectional title complex , the buck stops with the owner . It is the property owner ’ s responsibility to ensure that his tenants , their employees , family members and guests all comply with the complex ’ s rules .”
Economic challenges , rising crime rates and unemployment in South Africa are leading many people to opt for secure , affordable rental homes in sectional title developments . Investors are capitalising on the trend but are often naïve to the challenges of renting out property in a sectional title scheme . Constas explains that there is no legal connection between a body corporate and a tenant . “ This means that any transgressions or misconduct would be taken up against the owner who would be liable .
Case studies For example , if your tenant ’ s inebriated visitor accidentally damages the main gate , you will be directly liable to the body corporate for the costs of repairing it . You may have legal recourse against your tenant and their visitor , but the body corporate will claim directly from you . In terms of South African law , a body corporate cannot evict a tenant .”
Constas says that some overreaching trustees have approached her to ask if they can vet prospective tenants , but this is unreasonable and illegal . “ I recommend that the conduct rules of a complex include a clause stating that it is compulsory for a landlord to attach these rules to the lease as an addendum , and to include a provision stating that the tenant is bound by the rules of the complex . In this way , the landlord can say that the lease has been breached if his tenant contravenes the rules .”
While rental agents are often responsible for tenants ’ application
53 OCT / NOV 2023 Real Estate Investor Magazine