No or Partial Payment of Deposit and First Month’s Rent

In this tenant scam, a tenant will pay part of the deposit and/or first month’s rent and convince the landlord to allow the tenant to have occupation of the property and make promises to pay the rest later. When the agreed payment date arrives, the tenant will usually: make a further promise to pay later; provide the landlord with a plausible reason as to why payment could not be made; or stop responding to the landlord altogether. This tenant scam is actually quite common, and usually, most eviction cases stem from tenants employing this tactic.

There are several steps that a landlord can take to try and reduce the chance of falling for this tenant scam, such as:

• Requiring FULL payment before handing over the keys to the property.
• Contacting previous landlords to find out if the tenant failed to make any payment to them. [Note: Some landlords will sometimes hide the fact that the tenant failed to pay to try and have the tenant move out to avoid the costs of evicting the tenant.]
• Examine the payment history of the tenant on a platform such as TPN.

Late Payments

Another common tenant scam used by some tenants is to pay the rent late; the tenant will usually pay later and later to try and “train” the landlord into accepting whatever the tenant wants. Usually, when the date for payment arrives, the tenant will provide somewhat convincing reasons for the late payment; however, this usually evolves into the tenant failing to pay altogether.

There are several steps that a landlord can take to try and reduce the chance of falling for this tenant scam, such as:

• Insisting on payment as agreed to in terms of the lease agreement.
• Taking quick action when the tenant fails to make payment as agreed to in the lease agreement. This conditions the tenant to make payment when they have to, or else they will receive a letter of demand or some other notice.
• Examine the payment history of the tenant on a platform such as TPN.

Prepayment of Rent

This uncommon tenant scam involves the tenant offering to prepay the rent, then prepaying the rent (Eg, for 4 months) and then making no further payments whatsoever. While this tenant scam is hard to detect, there are steps that can be taken to try and reduce the likelihood of falling victim to this tenant scam.

Steps that can be taken:

• Examine the payment history of the tenant on a platform such as TPN.
• Determining the tenant’s ability to afford rent through an affordability assessment.
• Determining where the money comes from. This is to see if the money received was a one-off payment or if it is a regular occurrence. Example: If the money is from the tenant’s monthly wage or salary, this could be seen as a reduced risk. If the money comes from a business deal that was successful, this could be seen as an increased risk.

Demanded Alterations

Some prospective tenants will demand that a property be renovated or that certain changes be made to the property before the tenant moves in. In this case, the tenant might be demanding unreasonable changes and/or renovations, and this should be guarded against. These tenants usually prove difficult to work with and are prone to withholding rent or other payments if they do not get their way, and hence it might not make commercial sense to do business with this type of tenant.

Steps to avoid this type of tenant:

• Make sure that the property is maintained to a reasonable state.
• Talk to previous landlords to get a feel of what type of person the tenant is.
• Examine the payment history of the tenant on a platform such as TPN.
• Talk to the tenant to get a feel for what type of person the tenant is.
• Act in a calm and reasonable manner. The moment you become overly emotional, the tenant will abuse this to try and make their move.

Fake Proofs of Payment

This is, unfortunately, a common tenant scam used by some tenants to trick the landlord into thinking that payment has been made. In this case, the tenant would manipulate an existing proof of payment (“POP”) to show that payment has been made, or the tenant would create a completely fictitious proof of payment and provide it to the landlord. This tenant scam is hard to detect by looking at the proof of payment itself, but some investigation can quickly reveal the truth.

How to avoid:

• Wait for the funds to clear.
• Google the bank that supposedly issued the proof of payment, and phone the bank to confirm the details of the proof of payment.
• Examine the payment history of the tenant on a platform such as TPN. Some tenants that are prone to this tactic will usually have done it before.

Disclaimer: The above should not be accepted as legal advice, and you are advised to seek legal advice. The above is based on our own observations, and your circumstances may be different to warrant a different solution or outcome.

The post Common Tenant Scams every Landlord needs to watch out for first appeared on EasyEvictions.

For so long as the tenant has the right to occupy the property, the tenant cannot be evicted from the property and hence it is crucial that the right to occupy the property be terminated in accordance with the applicable laws and the agreement. If the right to occupy is not terminated in accordance with the applicable laws and the agreement, the right to occupy the property will survive and continue to allow the tenant to occupy the property and resist an eviction.

Most landlords are of the view that simply telling the tenant to leave the property is sufficient to terminate the lease agreement; however, this is not so. The right to occupy the property needs to be terminated, and only then can a landlord tell the tenant to vacate the property.

The above should not be accepted as legal advice, and you are advised to seek legal advice.

The post Why is it so important that the right to occupy be terminated? first appeared on EasyEvictions.

What we would recommend is that the landlord should engage the non-paying tenant to agree on a date and time at which the non-paying tenant will vacate the property, and the landlord can even offer to help the non-paying tenant find new accommodation. The thinking behind this is that it may prove to be quicker and cheaper to try and reach an agreement as to when the non-paying tenant will leave. We highly recommend that the agreement to leave be put in writing, as this can be used should the need to evict the non-paying tenant arise.

If the non-paying tenant is engaged and it appears that the non-paying tenant is not serious about leaving the property, then you may want to commence with eviction proceedings as soon as possible. It often turns out that some non-paying tenants will try and use the good-faith engagement to extend their stay as long as possible.

In light of the above, we recommend starting eviction proceedings the moment it appears that the non-paying tenant is not serious about vacating the property (or the non-paying tenant has previously agreed to leave but continued to stay on the property).

The above should not be accepted as legal advice, and you are advised to seek legal advice.

The post My tenant claims he is unemployed and cannot pay rent. What do I do? first appeared on EasyEvictions.

Some signs that a prospective tenant may become a non-paying tenant include the below signs.

Poor Payment Record

The prospective tenant has a poor payment record based on interactions with previous landlords. You can approach various credit bureaus for credit reports in respect of the prospective tenant. You can also get a landlord-specific report from TPN (https://mrisoftware.tpn.co.za/) and this report should detail the payment record of the prospective tenant.

A potential red flag is when the prospective tenant has made late payments or missed payments altogether and hence a credit report, or a tenant report from TPN, is crucial in vetting your prospective tenant.

Employment Status

A prospective tenant that is currently unemployed, on probation, self-employed or relying on a third party to pay for rent is a risk not to be taken lightly. Accordingly, it is a good idea to have a tenant who is employed in a stable job.

Some self-employed tenants experience cash flow issues and may default on paying rent, and in fact, this is a source of many evictions that we attend to. Even prospective tenants employed by their own companies may experience this, and hence it is a risk to be considered before proceeding to place the tenant in the property.

Difficult Personalities

Another issue is that some prospective tenants may be difficult to deal with and develop a sense of entitlement to having a certain state of affairs operate in a particular manner. Accordingly, we recommend that you meet the prospective tenant to get to know the prospective tenant to try and ascertain if the tenant might become difficult later on.

Key signs include:

• Demands that the property be in a very specific state (such as: wall colours; new cupboards when the existing cupboards are acceptable; new tiling when there is no damage to the existing tiles; new light fittings when the existing fittings are in a good and working condition; unreasonable security measures; etc).
• Refusing to sign credit check consent forms.
• Refusing to let you contact their previous landlords.
• Refusing to provide payslips.
• Demanding unnecessary changes to the lease agreement.
• Insisting that there is no need for a written lease agreement.

Changing Relationships

While it may sound unfair, a fair number of breakups result in evictions needing to be carried out by the landlord because it often happens that a relationship ends and the one partner is left in the property. The remaining partner may have difficulty in affording the rent and other obligations.

The question to be asked is: can each tenant pay the rent and still afford household necessities? Often, it later occurs that the partners cannot individually afford the rent and this results in rental defaults.

Affordability

The prospective tenant claims to have the necessary funds to afford the property, but when you look closely at the usual income and expenses of the prospective tenant in question, it transpires that the prospective tenant cannot afford the rent in the long term.

Another tell-tale sign is that the tenant lives beyond their means by having a fancy car but not earning enough to afford the car.

Property Hopping

Some non-paying tenants tend to move from property to property in an attempt to escape the arrear rent that the prospective tenant has racked up, and hence, a prospective tenant who seems to be hopping from rental property to rental property may be a sign that the prospective tenant is unable to pay rent in full and on time.

The above should not be accepted as legal advice, and you are advised to seek legal advice.

The post What are the signs that a potential tenant might become a non-paying tenant? first appeared on EasyEvictions.

In order to get an eviction court order in terms of the PIE Act, the following process will need to be followed:

Step One

The right to occupy the property must be terminated and so we would send a letter of demand to the tenant demanding all arrear rent and compliance with the lease agreement. Should the tenant fail to comply with the demands in the letter of demand a termination letter is sent to the tenant (sometimes people call this letter the ‘eviction letter’.

Step Two

We draft the eviction court papers and have these papers delivered by the Sheriff of the Court. These eviction court papers explain to the tenant why they are being evicted and also provide other information needed by the court to reach its decision.

Step Three

We have the court consider what has happened so far in the eviction process and then the court authorises a special notice warning the tenant of the date on which the court will consider the eviction.

Step Four

We approach the court to have the eviction court order granted and the court considers all relevant factors such as: the reason for terminating the right of occupation; the process followed so far; whether the tenant has a legal defence to the eviction; the harm caused to the landlord; and; whether or not the is alternative accommodation for the tenant (you do not need to provide this accommodation). In this step, the court usually grants the eviction court order and indicates when the eviction can take place.

Step Five

A warrant of ejectment (or writ of ejectment) is obtained and given to the Sheriff of the Court to evict the tenant from the property.

The post How do I get an eviction letter? first appeared on EasyEvictions.

If the lease agreement is a fixed-term lease agreement, then section 14 of the Consumer Protection Act provides that in order to terminate a fixed-term lease agreement you need to give the tenant 20 business days to fix the breach of the lease agreement and should they fail to fix the breach, then you can terminate the lease by giving reasonable notice.

If the lease agreement is a periodic lease, then you are required to give a full calendar month’s notice (Eg: the whole of June, if the notice is sent during May). This termination does not need the tenant to be in breach of the lease agreement and is often called a “no-fault” termination.

We do caution that the lease agreement might require you to give a different notice period and hence it is recommended that you have an attorney consider the lease agreement and give you advice.

The above should not be accepted as legal advice, and you are advised to seek legal advice.

The post How much notice must I give to terminate a lease agreement? first appeared on EasyEvictions.