Assessment & Traning Centre

April 2010

Dear Rental Readers

Easter and school holidays are behind us and it is exactly two months to the long awaited Soccer World Cup. I trust that many rental agents have managed to let property to foreigners attending this event and that your documentation is all in order and your detailed inventories taken.

Please email any comments you have in this regard as I am interested to know if these lettings have involved any problems.

A recent article that appeared in the local community paper has great relevance because it has to do with problems of electricity payments. I am extremely worried about the fact that officials of important departments are ignorant of the laws and bylaws and give incorrect information. In past newsletters you have been urged to keep constant contact with tenants so that you are always aware of whether services are being paid. If a tenant refuses to notify you as to when and how much he has paid, put him in breach immediately and if necessary do not reinstate the agreement of lease until he does. I receive regular emails about tenants not paying for electricity or water and most of these have never been followed up by the agents from the date of commencement.

If you are of the opinion that this entails more work than your commission received, I urge you to form a variety of packages including and excluding the collection of services. Non payment of services is fast becoming an ongoing problem with many cases in the Tribunal, so be aware.

The Tatler/Tabletalk - 24 March 2010

OWNERS RESPONSIBLE FOR TENANTS' DEBTS

John Scott bought six apartments in Wynberg eight years ago, which he planned to renovate when he had the funds. He left a caretaker in charge but when he returned to Cape Town in 2007 from England, he found that the man had let the apartments and pocketed the rental money.

He got a shock last year when he started to renovate and wanted to transfer them into his name. The Wynberg electricity department said it couldn't be done because the tenants owed R4 000 and R20 000 respectively on flats 202 and 401 and he was responsible for the debt.

Even though he was told that legislation would only be passed in 2010, that would make the property owner responsible for the tenants; unpaid services like water and electricity, Mr Scott still had to pay up before transfer took place. Mr Scott's lawyer told him the information was "rubbish". The lawyer phoned the electricity department where he was told that the bills would be referred to debt management.

Back in Wynberg Allan de Jager told Mr Scott that he would not have to pay the electricity for 401 because the apartment "wasn't in anybody's name. However Mr de Jager referred him to Johan Tesselaar, who said the bills were Mr Scott's responsibility and confirmed this by email.

"Someone did sign for apartment 202 but that the City allowed a bill of R20 000 to be run up in 401 (without a signature) borders on the criminal," Mr Scott said. He was still truing to resolve the issue when the City cut the electricity in 401 whilst the tenant was living there.

"However I turned it back on because it is a blatant attempt to force me into settling the account but I refuse to be blackmailed into paying a bill which is not my responsibility. I am well travelled and nowhere else in the world will you be asked to pay for a service that you haven't applied for or used. Can you help me get the situation solved?" Mr Scott asked.

Property expert Vivien Marks, a board member of the Rental Housing Tribunal, said there are not many people who would buy property and leave it in the hands of a caretaker for five years without a proper structure in place. "I am amazed that council officials were unable to tell Mr Scott there is a by-law that states the owner is ultimately responsible if the tenant doesn't pay for services. It is a fact that transfer of a property cannot take place unless all rates and services have been paid regardless of who has run up the bill" she said.

"It is not a case of being blackmailed by the electricity department. If Mr Scott had investigated how services were provided on taking transfer, he would have become aware of the relevant legislation. Unfair as it may sound the owner is responsible for his tenants' debts, but that is how the law works. Mr Scott's only recourse is to sue the ex tenants for the electricity they used as well as the caretaker of his properties.

Trevor Blake, Cape Town's Director of Revenue, said the City holds the owners liable for the debts of their tenants and it applies to all municipalities. He said that as properties are sold the electricity and water will be registered in the name of the owner.
"Where debt management actions are taken against tenants and the services have either been restricted or disconnected, the city will not enter into arrangements with them but will insist that the services are put into the owner's name."

He said owners can request a copy of the tenant's municipal account and if they are in arrears they can ask again in writing for the water supply to be restricted and the electricity disconnected. "Some property owners want the City to restrict or disconnect services when tenants owe then rental arrears or when they want to remove the tenant from the premises. (Note: this official is unaware that a landlord may NOT disconnect water or electricity) "But we will not do this if there are no municipal arrears" Mr Blake said.

As much as it is a bitter pill for Mr Scott to swallow, Ms Marks and Mr Blake are correct. It is clearly spelled out in Section 118 of the Local Government Systems Act and in fact the Constitutional Court has ruled that this ruling is not unconstitutional.

Perhaps the lawyer who told Mr Scott that the information he was given was "rubbish" would like to challenge that August institution.

We have assured you over the months that we will notify you as soon as we are able to offer you RPL Training in which we are directly involved. Debbie and I have joined Ditasa and are able to offer training for RPL through them.

There are three options open to you in order to obtain either the FETC: Real Estate qualification on the NQF 4 level or The National Certificate: Real Estate on the
NQF 5 level:

1. Full exemption based on the candidate's tertiary qualification
2. RPL (Recognition for Prior Learning) consists of a three and a half day workshop with the main aim to assist you in following the procedure to compile a PoE (Portfolio of Evidence) through self-study and personal research or own knowledge gained through experience and former study. This process should be completed within three to nine months. We will start with workshops for NQF 4 & Level 5 as from June 2010.
3. The Full Training Program consists of five to six contact sessions which will last between 3 and 5 days each with an interval of about five weeks between the various contact sessions.

Please note that the assignments for the Portfolio of Evidence (PoE) and the outcome thereof are exactly the same for both RPL and the Full Training Programme. The difference is essentially class room training vs. own study.

Upon enrolment certified copies of the attached will be required - please start gathering these documents as soon as possible.

1. ID document
2. Matric Certificate (contact the Department of Education if yours is lost)
3. Marriage Certificate (married women only)
4. Other Tertiary qualifications (Subject detail for all study years to be included )
5. Board Exam Certificate
6. Fidelity Fund Certificate.

Fee structure:
NQF LEVEL 4:
Cost: R6156.00 (Deposit of R2000 + 3 x R1410.00 payments)

NQF LEVEL 5:
Cost: R6794.00 (Deposit of R2000 + 3 x R1625.00 payments)

Classes will take place at the Ditasa Campus in Bellville.
We will be sending out enrolment forms with confirmed dates shortly.

Keep in mind that you only have until the end of 2011 to complete this qualification.

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