As a landlord you are always vulnerable to tenants running into difficulties and not paying their rent, and the current economic climate has resulted in many tenants defaulting on their payments. While the natural reaction would be to evict the tenant, they are protected by the Prevent of Illegal Eviction from Unlawful Occupation of Land Act (also called the PIE act). This does not mean that landlords cannot evict tenants; it just means that eviction has to be done according to the required legal processes and procedures.
It is vital that any landlord understands the PIE act in order to know how to go about dealing with a non-paying tenant, and that the correct legal processes are followed and that the tenant is treated with dignity. Failing to pay rent is a breach of the rental or lease agreement, and it is therefore vital that any lease agreement is fully legally compliant and that all the legal criteria have been met. Clauses must also be written into the lease agreement to protect both parties, and the more comprehensive the agreement, the better protected both parties will be.
Breach of Contract
Once a breach has occurred, the landlord has to give official notice of 20 days to the tenant to rectify the situation. After this period if rental has still not been paid, the landlord is entitled to issue a summons for the rent. If this doesn’t work, the landlord will then be able to cancel the lease agreement. Once the lease agreement has been cancelled the tenant is considered an illegal occupant of the property and can then be evicted according to the PIE act.
Application for Eviction Order
The process of eviction will commence with an application of eviction to the court, and it may take up to ten weeks for the eviction order to be granted. It is also considered feasible by many courts to give the tenant 30 days after the order has been granted to find alternative accommodation – this means that the eviction process could take as long as 5 months! If tenants have still not moved after this period the Sherriff of the court is lawfully entitled to a physical eviction of tenants and their goods.
Legal costs
Legal costs are expensive and in addition to lost rental income the landlord could spend up to R8000 for an unopposed eviction, and if the tenant is opposed and fights the eviction it could cost substantially more and take a lot longer. It is therefore important that the lease agreement is detailed, and that landlords enjoy maximum protection by handing properties over for management by an estate agent or registered property manager.