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Time to hit the “pause” button on evictions?

Elsewhere in the world legislation is ensuring tenants don’t lose their homes due to COVID 19.

Time to hit the "pause" button on evictions. Eviction Lawyers

As if we didn’t have enough to worry about. COVID 19 is making everyone anxious for their health. Although the vast majority of patients recover, in South Africa we have a very vulnerable population and a weak health system, so widespread infection will wreak havoc in families and communities. Furthermore, those who have recovered describe the illness as extremely unpleasant, leaving them very weak for a considerable time. It’s to be avoided at all costs, hence the severe restrictions we are all living under and the lockdown that we are about to begin.

Beyond the literal threat the virus presents to health, up and down the country businesses have been closing, particularly in hospitality, and now all activities but essential services must cease while we all stay indoors for three weeks. If employers can’t afford to pay wages, employees will be sent home with no income. How, then, are they meant to pay their bills, including rent?

Some lenience on loan re-payments

As of 23 March, all the major banks have announced some provision for hardship caused by COVID 19. Standard Bank has announced a three-month payment holiday for small businesses with a turnover of less than R20 million, and for full-time students with student loans, to start on 1 April and run until 30 June. For other loans, including mortgage bonds, customers are urged to contact the bank. The other major banks are also assessing the situation and either inviting customers to contact them individually or waiting to see if they need to take more radical steps.

What about tenants?

Homeowners with bonds can hopefully expect some mercy, but what about tenants with rent to pay? In places where the pandemic has a tighter grip, legislative measures have been put in place to protect renters. Around the world, cities in the US and countries including Spain have temporarily halted evictions in response to the COVID 19 pandemic.

In England and Wales, the Housing Secretary has said, “Emergency legislation will be taken forward as an urgent priority so that landlords will not be able to start proceedings to evict tenants for at least a three-month period.” Up in Scotland, similar action is proposed. The Housing Minister said, “No landlord should evict a tenant because they have suffered financial hardship due to coronavirus and we are actively considering how best this can be addressed.”

A spokesperson for a tenants’ association said: “Up and down Scotland, tenants are facing not just a major health crisis, but the prospect of destitution and homelessness too. As their workplaces begin to shut their doors, it is hard to see how tenants who are already struggling to make ends meet will be able to pay their rent. It is unconscionable that anyone should even have to worry about being evicted from their home at this time.”

The situation here in South Africa is similar, and arguably will be worse, given our levels of poverty and disadvantage. At SD Law we support the 31 NGOswho have come together to appeal to President Cyril Ramaphosa, his Cabinet and Chief Justice Mogoeng Mogoeng to follow in the footsteps of our international counterparts and forbid evictions during the current crisis. After all, in a lockdown, it makes no sense at all to put people out on the streets.

Stop the “ejectment” if not the eviction

We understand that there may be situations where the eviction is not only legitimate, but long overdue. Perhaps a tenant has significant arrears with rent or has damaged the property. We’re not advocating for the entire eviction process to be overturned in these circumstances. A fair and just procedure can be resumed in due course, when life returns to normal. But this is not the time to execute a warrant of ejectment, i.e. to put the tenant out.

Look after good tenants

We would also urge landlords to exercise leniency in the case of good tenants who suddenly cannot pay their rent because they have lost their jobs or income due to COVID 19. If a tenant has a history of timely payments and full compliance with the terms of the lease, they should be treated compassionately and a repayment plan worked out when the crisis is past.

From a purely commercial perspective, even if the appeal to our shared humanity is in vain, evicting a good tenant because they can’t pay their rent is unlikely to result in replacement income. No one is looking to move right now. And a property could sit empty far longer than the time it takes for the existing tenant to recover. Good tenants are worth looking after.

Update 27 March:

In the government gazette released last night (26/3/2020), all evictions and execution of attachment orders, both movable and immovable, including the removal of movable assets and sales in execution are suspended with immediate effect for the duration of the lockdown.

Update 26 March:

As we head into a lockdown that will straddle two months, you may be wondering what will happen if a lease expires during the three-week period? In short, no movement is allowed. A tenant cannot be forced to leave a rented property even if another tenant is lined up to move in. The incoming tenant also won’t be able to vacate their current premises. The extraordinary measures in place (see the government gazette for full list of restrictions) take precedence over other contracts in place, such as leases. Technically, landlords and tenants can pick up where they left off as soon as the lockdown is over, but in reality it may be easier for everyone simply to extend the lease by one month and push the moving-out or moving-in date back to 1 May. Everyone in the country is in the same situation.

Rent should still be paid for any occupancy beyond the lease expiry. If  the tenant is in financial difficulties, then a payment plan should be negotiated.

We’ve mentioned a “pause” on evictions to protect tenants who may be financially compromised as a result of COVID 19. But what about evictions that were already scheduled before this crisis emerged? Although the gazette does not mention eviction specifically, it is fair to assume that no movement means no movement. In effect, normal life is put on hold – paused – for three weeks. it will resume on 17 April.

Contact Eviction Lawyers for help

We are eviction lawyers in Cape Town and Johannesburg.  We act for both landlords and tenants and uphold the rights of each to a fair and satisfactory tenancy. In these uncertain times, we appeal to everyone to act with empathy and compassion. If you are worried about your tenancy or your tenants, contact Simon at Cape Town Eviction Attorneys on 086 099 5146 or email   simon@sdlaw.co.za.

Further reading:

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Simon Dippenaar | SD Law Cape Town

http://www.sdlaw.co.za

Simon Dippenaar has a BBusSc LLB degree and Professional Diploma in Legal Practice from the University of Cape Town, and is an admitted attorney of the High Court of South Africa. He is the founder and director of private legal practice, Simon Dippenaar & Associates, with offices in Cape Town and Gauteng representing South African and international clients.

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The information on this website is provided to assist the reader with a general understanding of the law. While we believe the information to be factually accurate, and have taken care in our preparation of these pages, these articles cannot and do not take individual circumstances into account and are not a substitute for personal legal advice. If you have a legal matter that concerns you, please consult a qualified attorney. Simon Dippenaar & Associates takes no responsibility for any action you may take as a result of reading the information contained herein (or the consequences thereof), in the absence of professional legal advice.