Rental boom - might cause problems

Catherine Cockcroft, sales manager of Propell, a levy funding and collection company, says this situation particularly applies to sectional title properties.

"Although the current situation will be welcomed by landlords it carries with it the danger that the proportion of tenants in sectional title schemes will rise exponentially," she says.

"In many schemes with a high percentage of tenants, the upkeep of the units and the general conduct all too often are compromised ? and? when Propell is commissioned to assist projects in distress, serious financial problems often go hand in hand with equally serious tenant issues."
She says buy-to-let investors are often lackadaisical about control of their tenants. Often the perception is that this is the responsibility of the trustees, the managing agents or, possibly, their rental agents.

"In reality, the Sectional Title Act 95 of 1986, which is binding on the body corporate, owners of sections and any person occupying a section, and the Prescribed Management Rules, obligate owners to ensure that conduct and behaviour guidelines are complied with.

"The owners of sections are also responsible in terms of the Rental Housing Act for attaching copies of the scheme's rules to lease agreements to ensure that the tenants are made aware of them, and, where tenants disregard these rules, the owners will ultimately be held responsible.
"With a steady increase in the numbers of tenants in sectional title units, responsible trustees should ensure that the rules deal with potential issues related to security and overcrowding. These problems crop up regularly in multi-tenant schemes where control has grown lax.
"Right now I would agree with Clarke that there are no better property investments than the sectional title sector. As the last Absa survey has shown, this sector is the one faring best pricewise. If, however, large-scale renting takes over from owner-occupants, strict vigilance will be essential to ensure that standards are maintained."

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us