Friday, July 3, 2015

Squatting tenant? 1st Step is the TPN Registered LOD

Heraclitus, the Greek philosopher once said: “The only thing that is constant is change.”
Thankfully, for TPN, change is synonymous with progress and inspires development.
Our latest product upgrade is our enhancement to our Letters of Demand, which are now available via Registered Post.

In the perfect world tenants pay their rent on time and in full each and every month; in reality some tenants require a gentle reminder, some tenants only react when they have been handed over and unfortunately a small percentage  adopt the PIE approach (back the landlord into the eviction court process).

Naturally the tenant who needs a gentle reminder letter is different to the tenant who will drag you though a 3 month court process; and of course the letter you send will reflect this. The intention of the letter of demand will determine the minimum requirements and delivery method.

Letter of Demand: Intention “Blacklist the Tenant”

  • Must state the landlord / estate agent’s intention to load an adverse listing on a credit bureau and 20 business days is given prior to the listing (National Credit Act)
  • Delivery method: written notice

Letter of Demand: Cancel the Lease

  • Distinction between Natural Person vs Juristic Person:
    • Natural Person tenants should be given 20 business days to pay prior to cancellation of lease (Consumer Protection Act)
    • Juristic Person tenants should be given the number of days as specified in the lease agreement to pay prior to cancellation of lease (Consumer Protection Act s14 does not apply to lease agreements between 2 juristic entities)
  • Month-to-month tenants should be given the number of days as specified in the lease agreement to pay prior to cancellation of the lease (Consumer Protection Act s14 does not apply to month-to-month lease agreements)
  • Delivery method: written notice

Letter of Demand: Eviction


The most important distinction between the Letter of Demand to Cancel the Lease and the Letter of Demand which will play out into an Eviction Process is the requirement to deliver the letter via Registered Post.

Thankfully the majority of tenants who default on their rent and who receive a letter of demand followed up with cancellation of the lease will vacate; leaving a small but exasperating number of tenants to evict – and it is for these tenants TPN have enhanced the TPN Letter of Demand process to enabled delivery via Register Letter of Demand.

Step-by-Step guide to sending the TPN Registered Letter of Demand:

  1. Login to TPN
  2. Select My Data
  3. Search / Add your tenant
  4. Select Letter of Demand (Choose 20 business Day, 7 Day or Registered Version)
  5. Enter the amount and Send

COST: the Registered Letter of Demand is R55.00 including postage



 

1 comment:

  1. There appears to be genuine confusion on behalf of both tenants and landlords about the legalities of what they can and can't do, and often this confusion leads to litigation. So, for the purpose of assisting people I am offering the following general tips. Commercial leasing

    ReplyDelete