Letting in all forms and shapes in Sectional Title schemes
Category Newsletter: Did you know?
As an owner in a sectional title scheme, before entering into a lease agreement or any other form of occupation agreement, remember that you, as the member of the body corporate, will remain, at all times, responsible for the conduct (and misconduct) or your tenants and occupiers, despite what your agreement may say.
I am often asked by trustees of bodies corporate if they can interview or veto tenants prior to a lease agreement being entered into or before the persons move into a unit. The answer is simple, no. The legal relationship is between the owner, as landlord, and the body corporate. Interestingly, the Community Schemes Ombud Service, allows a party to an application for dispute resolution to be a tenant, if the issue relates to the administration or management of the body corporate.
An owner must make sure that the tenant or occupier receives a copy of the conduct rules of the body corporate, and that they, as landlord, are responsible to ensure that the rules are adhered to, and if not, that the relevant review process is followed and fine/s paid - if the amended conduct rules provide for same.
The owner must notify the body corporate of the names, identity numbers and contact information of all tenants and occupiers each time occupation changes. The amended conduct or management rules of the body corporate can further require that a copy of the lease agreement be provided to the body corporate, or the duration of the lease, the number of occupants residing in the unit or the vehicles driven. The rules could even provide for when a unit may be vacated or moved into, and that a damages deposit be paid.
With tenancy, overcrowding often occurs, which is not permissible from a municipal and National Building Regulation perspective. The CSOS has also allowed additional contributions to be levied in respect of the additional expenses incurred by the body corporate in regard to the increased occupation of a unit in the event of the alteration of a unit to allow for additional bedrooms.
Short-term letting of a unit, being occupation of less than one year, may be regulated, reasonably, by means of an amended conduct or management rule, restricting the duration of lets to periods of not less than a certain period of time, such as six months. Arguments can be raised for or against letting, and each scheme will need to weigh up whether short-term letting is possible and desirable within their scheme, based on the layout, facilities, security, occupation, location etc., remembering that any such regulation will need to be approved by the members and the CSOS before being enforced.
About the Author
Please click on the following link to learn more about the Author and her company, TVDM Consultants - https://www.tvdmconsultants.com/zerlinda-van-der-merwe.
Author: Zerlinda van der Merwe, TVDM Consultants
