Dealing with Tenants Who Don’t Pay Their Rent

Share-List Property are frequently asked by landlords to find them tenants as theirs have either packed up and left without notice or have not been paying rental. If a landlord finds themselves in this situation it is best to take action immediately. It should be noted that it is unlawful for a landlord to merely cut the tenants supply of electricity or water, change locks, seize stock and equipment or intimidate a tenant should they not pay their rent on time. The best course of action is as follows:

1.    Take action immediately - when a tenant first defaults on their rental. This sends a clear message that as a landlord you are serious about sticking to the lease agreement. Action may be in the form of a phone call to establish why the rental is late, followed up by an email to request proof of payment. This ensures that the initial notification is in writing.

2.    Send a formal letter to the tenant via registered mail – if the rental payment is still not made. This should formally inform them of the breach of the lease agreement and a require them to remedy that breach within a stipulated timeframe, as required in the terms of the lease agreement, following which you, as the landlord, shall be entitled to cancel the lease without further notice. The letter should as a minimum include the details of the parties involved, the physical address of the property being leased, nature of the breach and reference to the lease agreement and must be signed and dated by the landlord.

3.    Appoint an attorney - should the tenant still not settle the rental payment within the required timeframes. The attorney would typically then undertake the following:

·         Arrange the issuance of a summons or rental interdict by the sheriff of the court.

·         Apply for a default judgement against the tenant.

·         Apply for an ejectment order to evict the tenant.

Legal proceedings should be the last point of call if possible, as they are both lengthy and costly.  According to Rob McInerney, Owner and Principal at Share-List Property, “In most cases, engaging a reputable broker to screen and manage the placement of tenants is a lot safer than trying to place the tenant yourself and can vastly reduce the risk of rental disputes later down the line.  Share-List Property always undertakes a thorough vetting of a prospective tenant’s references and credit records before finalising a lease. It is also vital for a landlord to ensure a good deposit is held in trust as this may act as leverage or can cover the costs in some cases.” 

Share-List Property specialises in sales and leasing of commercial and industrial property in most of the Greater Durban Area, specialising on the N3 Corridor from Pinetown to Camperdown.  Contact us should you wish to lease your property on 031 764 7101 or visit our website – www.sharelist.co.za