2 min
18 October 2022
22:00

Poor-paying tenants impact an owner’s bond repayments as municipal charges continue to mount.

Many rental property owners are dealing with non-paying tenants and are wondering if they have the authority to turn off the electricity to their property.

Radio Islam International speaks with a legal expert and founder of the law firm Schoeman Law Inc. about this quandary.

The Gauteng high court heard the Wilrus Trading v Dey Street Properties case, in which a commercial property owner disconnected electricity service due to a tenant’s failure to pay the electricity bill.

The tenants in question conducted their business from the premises of the property on Dey Street – owned by Dey Street Properties.

The lease agreement was terminated, but the tenants refused to leave.

They opened a court case against the managing agents and the metering service provider when their access to water and electricity was cut.

However, the tenant was reinstated because the owner did not follow the procedure and took matters into their own hands.

The court ruled in favour of the tenants because the provision of electricity constituted material interference in possession of the property itself.

Furthermore, the court held that it was difficult not to conclude that interference with the electricity supply materially interferes with the tenant’s possession of the property.

Schoeman Louw stated that if the commercial property owner had followed the proper procedures, the reinstatement would not have occurred.

She stated that the cancellation of the lease agreement necessitates a relevant notice, which must be delivered under the contract you have with the tenant.

She also mentioned that municipalities have their internal process for disconnecting services.

Schoeman stated that tenants must be informed of their non-payment or poor performance, even though many municipalities have by-laws allowing utility disconnection.

“To avoid irregularities, landlords should begin reporting any issues with tenants in court as soon as possible,” she said.

[LISTEN] to the podcast here

By Nokwanda Dlangamandla
kzn@radioislam.org.za