Real Estate Investor Magazine South Africa March/April 2020 | Page 31

When Rental Housing Tribunals don’t work In the event of a dispute with a landlord, some tenants will approach one of the Rental Housing Tribunals that are set up and governed by the Rental Housing Act and the subsequent Amendment Act. However, this can be a lengthy process with many tenants becoming frustrated and giving up before any resolution is found. While the Housing Tribunals are an excellent way to resolve disputes, Franze believes that before entering this bureaucratic process, tenants and landlords should try to resolve disputes with the data at their disposal. “The best solution all round is to resolve disagreements quickly and fairly. More particularly, early resolution will result in less time wasted and will maintain the good relationship between parties.” he adds. “We must also point out that tenants do not have the right to withhold rent if they are in a dispute with their landlord over utility bills. Not only does the law favour the landlord in these instances, most rental agreements will have a clause in them stating that disputes may not be used as an excuse for withholding payment,” Franze warns. FAQs about tenant-landlord disputes 1 Question: What recourse is available to landlords and tenants in the event of a utility bill dispute? Answer: Property owners and their tenants can resolve disputes by approaching one of the Rental Housing Tribunals that are set up and governed by the Rental Housing Act and subsequent Amendment Act. However, this can be a lengthy process. A better starting point would be for the parties to try and resolve disputes between themselves with the data at their disposal. 2 Question: How can landlords and tenants access the data they need? Answer: In the spirit of the Access to Information Act, as well as the Consumer Protection Act, providing tenants and property owners with accurate data of the purchase history makes sense and is a big step towards building trust through transparency. Accessing this historical information via an online portal can offer a transparent set of data that can be shared with all parties to resolve disputes. “Similarly, tenants can’t have their utilities cut off for non- or late payment of rent. Some municipalities will use this as a last resort for rates non-payment, but landlords cannot use access to water and power as leverage against their tenants.” Accessing historical data via online portals provides a transparent set of data “Good news for tenants (and landlords, managing agents and body corporates wanting to avoid disputes) is that the Citiq Prepaid system provides access to data at a granular level. We also believe that in the spirit of the Access to Information Act as well as the Consumer Protection Act, providing tenants with the accurate data of the purchase history makes sense and is a big step towards building trust through transparency.” 3 Question: Can landlords pass on certain costs to tenants? Answer: Most leases will include some monthly deductions that tenants should be aware of. These will include expenses such as rates and taxes, water and even costs for electricity for shared services in common spaces. However, these should be clearly spelled out in the lease, in simple language, and explained to the tenant when they sign the documentation. 4 Question: Do tenants have the right to withhold Franze goes on to caution tenants that most leases will include some monthly deductions they should be aware of. These will include expenses such as rates and taxes, water and even costs for electricity for shared services in common spaces. But, Franze says these should be clearly spelled out in the lease, in simple language, and explained to the tenant when they sign the documentation. “The Citiq online system gives tenants access to the information they need to feel secure in the billing process. This transparency fosters trust. We understand landlords, agents and body corporates have limited time to deal with queries. Easy access to our call centre gives a quick and easy first line of contact that can clarify most questions and, in itself, significantly reduce disputes,” says Franze. rent if they are in a dispute with their landlord over utility bills? Answer: No, not only does the law favour the property owner in these instances, most rental agreements will have a clause in them stating that disputes may not be used as an excuse for withholding payment. 5 Question: Can landlords cut tenants’ utilities cut off for non- or late payment of rent? Answer: No, some municipalities will use this as a last resort for rates non-payment, but property owners cannot use access to water and power as leverage against their tenants. SA Real Estate Investor Magazine MARCH/APRIL 2020 29