Joscho spells out contracts

TENANTS can’t claim ownership of property that they have rented from the Johannesburg Social Housing Company (Joshco) for a number of years, the company has said, pointing out that it only provides rental accommodation.

BellavistaJoshco flats in BellavistaGugu Mkhize, a senior manager for corporate support at Joshco, says that before a tenant moves into a Joshco property, it only signs a standard rental lease agreement with the tenant. It doesn’t give out a licence that allows them to own the property after a certain period.

Before signing leases, applicants need to go through an approval process, which includes submission of personal details, employment details and assessment of affordability, she says.

“The terms of the lease agreement include Joshco and tenant responsibilities; that is, Joshco will provide accommodation which is affordable and in exchange for that, tenants will pay rent for the accommodation benefit they will be enjoying in Joshco’s units.”

Mkhize says tenants are bound by the terms of their lease contracts to pay monthly rental for the accommodation and in turn, Joshco has to ensure the safety, cleaning and maintenance of the buildings.

Eviction
It emerged in late October that some tenants at the Walter Sisulu Square flats in Kliptown, Soweto, who had defaulted on their rent, were evicted after the matter was taken to the South Gauteng High Court. About 33 percent of residents living in the units were reportedly refusing to pay rent.

BG Alexandra in the inner cityBG Alexandra caters for people living in the inner cityMkhize says Joshco uses its approved credit control policy and procedure to administer rental payments. The procedure for collection of revenue includes contacting tenants for monthly payments, and sending out reminders and letters of demand.

Tenants who default on their rental payments or fail to settle rental arrears are given about 120 days before they are served with an eviction notice. A case for recovery of its share of the rent arrears can be filed if tenants continue to default on payments.

“All defaulting and non-paying tenants are pursued to recover the arrears. [If this fails] the normal debt collection processes take course,” she explains.

“If tenants fail to contact Joshco to make arrangements for settling outstanding arrears or if they sign an acknowledgement of debt but fail to honour that arrangement, such accounts are handed over for legal processes to commence until eviction stage.”

Rent
If Joshco files a suit for its rented property to be vacated, and the tenant challenges the validity of the notice served, the tenant has to prove that the company did not send them monthly billing statements and that the notice to vacate was less than the stipulated 30 days.

Sol PlaatjieJoshco rents out flats in Sol PlaatjeJudge George Farber of the South Gauteng High Court dismissed the Kliptown tenants’ application to overturn their evictions.

Mkhize also points out that in terms of the lease agreement signed between Joshco and its tenants, it is illegal for the tenants to sub-let the properties.

In the standard lease contract, a deposit must be paid before the tenant moves in, and monthly rent is due thereafter.

Joshco has to maintain and repair the property, provide insurance, do alterations and improvements on units, spell out the terms of breach of contract by tenants, and provide the domicilium citandi et executandi.

Mkhize says Joshco’s mandate is to develop, refurbish and manage quality and affordable rental housing stock for the lower income market on behalf of the City of Joburg. It aims to eradicate the rental housing backlog and is responsible for developing mixed-density units for households earning a combined monthly income of between R3 500 and R7 500.