A dismal future looms for tenants in wake of coronavirus pandemic

OPINION: There is much uncertainty in our lives due to the coronavirus pandemic.

The lockdown has exacerbated our insecurities with people preoccupied with economic survival, as much as overcoming the Covid-19 scourge.

Experts in the property field have given good, common-sense advice to assist landlords and tenants through these turbulent times. The reality after the lockdown is that not much will change for tenants and landlords.

Life will go on as if nothing happened. Evictions, displacement of families, unlawful actions, lack of maintenance and exorbitant rent increases will continue. In fact, more tenants are likely to fall behind with their rentals, will be expected to compensate for late payments with interest, and face possible cancellation of their lease agreements. The journey ahead for those who struggle to make ends meet will be even more rugged.

The situation for a tenant in the informal settlement during the lockdown comes with additional anxieties.

A security guard who works seven days a week, 12 hours a day and who earns R1800 a month, pays R600 rental for his “shack”. Except for a small amount he keeps for himself, he sends the rest of his paltry income to his parents who live in a rural area. The lockdown has increased criminal activities in the informal settlement, making him vulnerable and scared. The owner of the security company he works for checks on him every day, but has not provided any protective equipment. The lockdown, however, will not affect the security company’s profit generated from the income received from residents’ monthly contributions.

Life, of course, is harsher for self-employed street traders who share rental accommodation. Unable to trade as street vendors, there will be no income and consequently no rental payments. Without a permit to trade, one co-tenant explained that she will not receive any relief from the municipality. She and others like her will not be able to provide an undertaking to pay off their rentals. An acknowledgement of debt will become a burden since there is no certainty about future income.

The government needs to subsidise the rentals of poor and struggling tenants. In terms of the Rental Housing Act 50 of 1999, provision is made for the Minister of Human Settlements to introduce a rental subsidy housing programme, as a national housing programme to stimulate the supply of rental housing property for low-income persons. Parliament may annually appropriate to the South African Housing Fund an amount to finance such a programme.

Twenty-one years since the introduction of the act, the subsidy and a policy framework, including norms and standards on rental housing, have not materialised. Such requirements were intended to give effect to the promotion of a stable and growing market that progressively meets the latent demand for affordable rental housing among poor people and people historically disadvantaged by unfair discrimination.

To achieve these objectives, government needed to introduce incentives, mechanisms and other measures that improve conditions in the rental housing market; encourage investment in urban and rural areas that are in need of revitalisation and resuscitation; and correct distorted patterns of residential settlement by initiating, promoting and facilitating new development in, or the redevelopment of, affected areas (sections 1 and 2[1] of the act).

Given the reality that tenancies are still rooted in medieval, feudalistic laws operating within the concept of modern market capitalism, struggling working class and self-employed tenants will be at the mercy of their landlords.

A dismal future looms for tenants, be they security guards, street vendors or low-income employees.

Dr Sayed Iqbal Mohamed is the chairperson of the Organisation of Civic Rights and deputy chairperson of the KZN Rental Housing Tribunal. He writes in his personal capacity.

Daily News