Being trapped in one’s home for 3 weeks, with the possibility of that period being extended already looming overhead, is not something to be scoffed at. While many fortunate homeowners may have the luxury of a yard, a majority of South Africans who rent property are truly confined to their homes. Being banned from leaving their properties and experiencing the outside world will undoubtedly have a greater emotional effect on these tenants, feeling trapped instead of safe in their own homes.
Being trapped in their homes may not be their biggest concern, though. With the majority of businesses being forced to close down, many tenants are soon to be left without an income. With rental agreements still having to be adhered to, the concern for many is how can they continue to be trapped.
But while tenants are facing the possibility that they may soon not be able to pay rent, landlords are also facing the possibility of losing one of their primary incomes. The fact is that both sides of the rental agreement have obligations they are committed to. In these uncertain times, both parties need to take a step back and re-evaluate their situation, going as far as they can to understand and accommodate each other with compassion.
A compromise has to be made; middle ground has to be found.
Banks and various financial institutes across the country have opened their doors (proverbially, of course) to their clients, helping them find solutions to the financial strains they are facing. Whether it is through email or talking directly to a consultant through a call centre, those who are faced with uncertain financial times should get in contact with their banks or seek the advice of a financial advisor to help you out of the current situation and plan for what still lies ahead.
When there really isn’t a viable way out, it is advisable to visit the TPN Credit Bureau’s website, a platform that can give both the tenant and landlord a better understanding of the tenant’s financial behaviour and rental payment history.
The site also offers a Rental Recovery Pack for tenants and landlords to establish their way forward when the payment of rent will be affected by the lockdown. Contained within the pack are the following three documents:
Income Declaration Agreement
This document enables tenants to declare the effect the State of Disaster has had on their income, whether it be temporary or permanent. Substantial proof of the affected income will have to be provided by the tenant.
Deposit Utilisation Agreement
Once it has been established that the tenant’s income has been affected, tenants may choose to have their deposit used as rent payment. If this is done, the deposit will have to be repaid once the lockdown is lifted.
Rent Deferment Agreement
This agreement will allow landlords to defer rental payments and arrange for their payment at a later stage, but within a specific period of time.
These solutions will help landlords offer their tenants the assistance they need when the tenants’ income is affected, while ensuring the minimal log-term affect for the landlord.
The lockdown has forced South Africans into isolation, but this may prove the best time for our nation to come together in spirit as we take the time to understand the struggles that those around us are going through.
Most importantly, this is a time to stay informed of what is happening and be ready for whatever may come.
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)