AN OVERVIEW OF PROPERTY LAW - Pg2
"A
clear sign that society is deteriorating is measured by the amount of
statutory law a nation has to introduce. The less common decency
prevails, common sense reigns and the less respect there is for accepted
good principles, the more a nation has to enact laws into its statute
books. And sadly, this trend is often spearheaded by government
itself."
Colin Fibiger
Whether you are in agreement or not, statutory law is part of our every day lives - read on.
RENTAL LAWS OF THE PAST
The rents legislation was
passed by Parliament in 1920 with many amendments or changes over eighty years.
The rents legislation modelled on English law was in response to the needs of a
changing society brought about by the two World Wars and was initially intended
as temporary measures.
Both “first” and “second” world countries passed laws to
protect tenants from exorbitant rent increases and evictions because of the
acute housing shortage. War Measure 89 of 1942 was enacted in South Africa to
protect business tenants but was abolished in 1980.
Property owners and their representatives saw the rent control
law as an “interference” of their common law rights. For instance, at common
law a landlord / landlady could terminate a month-to-month lease by giving one
month’s notice. Our courts clarified the one-month’s notice period to be a
calendar month’s notice to be given not later than the first day of the month
to be effective for that month.
The Rent Control Act 80 of 1976 placed further
restrictions on the landlord / landlady regarding the notice to vacate:
three month’s notice if the dwelling was required for personal occupation; six
month’s notice if required for renovation (lease suspended) with the tenant
having the first right of re-occupying the dwelling; twelve month’s notice if
the landlord / landlady intended to demolish the dwelling.
The landlord /
landlady also had to satisfy the High court that such demolition or
reconstruction was in the public’s interest and that the Minister of Housing
granted such permission.
A large number of dwellings
were phased out of rent control between 1978 and 1980 because of vigorous
campaigns by landlords’ representatives who had considerable support in the
apartheid parliament. Consequently, rent control applied to dwellings built and
first occupied on or before October 20, 1949. Any tenant, regardless of income,
who occupied this category of dwelling was “protected” by the provisions of the
Rent Control Act. As for dwellings that were phased out of rent control, a
tenant also enjoyed the “protection” of the rent control legislation if he or
she was in occupation at the time the dwelling was de-controlled and his or her
income was within a specific income category (amended regularly in the
government gazette). The income of a tenant however was not considered in
determining the rent increase of rent-controlled dwellings. In reality, a
pensioner ended up paying rentals similar to that paid by a millionaire in the
same building.
Rent control did not
apply to any dwelling built after the major phasing out periods (1978-1980).
All dwellings in “white” residential areas were eventually phased out of rent
control by the early 1990s. Rent control as argued by the powerful property
lobbyists, supposed to have stifled private rental development.
Surprisingly,
this major change, of bringing dwellings out of rent control, did not lead to
the building of more rental dwellings or any improvement in the private sector
rental market. Similar development emerged in other countries, with intense
debates for and against rent control and protection for poor tenants continues
in the United States of America
RENT CONTROL - DOES IT STILL APPLY?
Is a person of a residential
lease still “protected” under the Rent Control legislation? In other words, are
rent increases still limited to a 10% increase per annum and evictions
restricted? In a woird - No. These no longer apply. The Rental Housing Act, 50 of 1999, provided
a “cooling off” period of three years for tenants who were living in
rent-controlled dwellings.
On July 31 2003, rent
control seized to exist (date of commencement for repeal was August 1 2000)6 and
landlords were at liberty to increase rentals without restriction and were no
longer required to apply to a statutory body (the defunct Rent Boards) for an
increase. This has been a great relief to landlords, but has also created
crises in the lives of pensioners and poor tenants. Rent control laws were
introduced after World War 1 in most countries and were amended, abolished and
reintroduced over the past 80 years because of the critical housing shortage.
It still exists in the United States of America alongside Landlord-Tenants’
court that have the jurisdiction of high courts and with a subsidy scheme for
poor tenants
Back to Tenant Advice Centre Here
Go to Landlord Advice
Centre
To list your rental property with us go Here
Back to Main Advice Centre