CPA gives landlords few rights

2011-01-29 00:00

The new Consumer Protection Act (CPA), which comes into effect on April 1, could cripple the residential letting industry in South Africa.

Landlords and potential buy-to-let investors must familiarise themselves with the provisions of the Act and the possible implications, warns Lew Geffen Sotheby’s International Realty.

“In its current format, the CPA could prove disastrous for the rentals market because it is so restrictive of the rights of suppliers, or landlords in the case of the rental industry, that it could scare off droves of property owners from renting out their properties.

Currently most lease agreements are for a fixed period and the tenant cannot terminate the lease early. The CPA, however, allows the tenant to terminate the lease with 20 working days’ notice. A landlord can only terminate the lease if there has been a “material breach”, and after affording the tenant an opportunity to remedy the breach.

Jeremy Wagner, rentals manager at Lew Geffen Sotheby’s International Realty, says these are just two of the ways in which the new Act will reshape the way in which the rentals industry conducts itself.

“The Act offers landlords very little recourse against tenants and virtually no way out of leases.”

Wagner expects the real estate industry will make an application to Trade and Industry for partial, or even total, exemption from the more onerous provisions of the Act.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.