New South African laws 'may affect real estate investors'

Property investors who own real estate in South Africa and lease it out need to be aware of new legislation being introduced in the country.

Attie Pretorius, director and head of the national real estate practice at law firm Cliffe Dekker Hofmeyr, explained the Rental Housing Bill will have implications for landlords.

One chapter of the legislation relates to the establishment of tribunals to solve disputes between landlords and tenants, such as issues relating to overcrowding or poorly-maintained properties.

Meanwhile, Cape Town has recently introduced a by-law to tackle the problem of dilapidated and abandoned buildings, which allows the local authority to repair or demolish a property at the expense of the owner, Mr Pretorius added.

In a recent article for MoneyWeb, commercial property national head at Rawson Property Group Jason Lee urged landlords to exercise caution when choosing tenants. He advised those leasing out homes not to be worried about asking for large deposits, as this financial protection is needed because landlords are liable for charges when tenants default on bills to utility companies.