Check what your rent actually covers
Tenants planning to rent sectional title flats or townhouses should make sure they understand what their rent covers and how levies may affect them.
So says Berry Everitt, MD of the Chas Everitt International property group, who notes that sectional title landlords are generally responsible for the upkeep of the interior of flats or townhouses and will usually include this cost in the monthly rental.
Some landlords may, however, prefer to reduce rental in return for tenants taking some responsibility for interior repairs and maintenance.
Writing in the Property Signposts newsletter, he says that in sectional title complexes, the upkeep of the exterior and common areas such as gardens and garages is the responsibility of the body corporate - which pays for the necessary services with monthly levies collected from all the owners in the scheme.
"And although tenants do not usually have to pay the levy, that does not necessarily mean that levy increases will not affect them. They need to find out from their landlords whether or not increased levies will affect their rentals."
Everitt says that before renting a sectional title unit, tenants should also
ensure that the financial position of the body corporate is sound. "If
there is a history of owners not paying their levies, it may impact on the body
corporate's ability to maintain the complex. Even worse, if their landlord
is guilty of non-payment, his unit may be attached and sold in execution to
pay for arrears, leaving them literally out in the cold."
Tenants also need to find out how they will be billed for municipal services.
While some local authorities have started billing sectional title units individually,
many sectional title schemes still receive a single account for water and electricity
and divide the total among the owners in
terms of the relative size of their units.
"Owners who rent out their properties usually then just add this amount to the rent, but the system can be very unfair, with a single person renting a three-bedroom unit possibly having to pay more than a family of four renting a two-bedroom unit next door.
"Prospective tenants should thus try to ensure, where possible, that they will be billed for their actual water and electricity usage."
ISSUED BY CHAS EVERITT INTERNATIONAL
FOR MORE INFORMATION CONTACT
BERRY EVERITT ON
011 801 2500