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Deposits
The Managing agents of the complex in question used to charge a 'W&L' deposit of R1500 which is app 3 months charges. I, as an owner who rents his unit out, thought this excessive as they have a policy of disconnecting on non-payment anyway. I now find out from a new tenant that the MA have increased the W&L deposit to R2500. The trustees gave no such instruction and were oblivious to the fact! Comments?
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RE: Deposits
There is nothing in the Act or prescribed rules that requires an owner of a unit to put down a deposit or provide any other form of security for future levy liability.
Unless the rules of your scheme specifically include a provision that creates such a liability, you are not obliged to pay any such deposit....Show More
The idea may have merit, but it needs to be based on a proper legal foundation.
In the circumstances you describe - where the rules do not make any such provision, I do not think that the managing agent can charge the security deposit. And even if the rules did make the necessary provision the managing agent would not be entitled to change the amount of the deposit other than in accordance with the procedure provided for in the scheme rules.
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RE: Deposits
Prof: the deposit referred to by me is purely for Water and Electricity. My concern is that prospective tenants could be driven away as they already have to pay a months rent in advance and a deposit to me equivalent to one months rent.
RE: RE: Deposits
Hi, Michael. I cannot understand the necessity of this deposit in a Sectional Titles scheme. The owner of the Unit remains reponsible for payment, not the tenant.
RE: RE: RE: Deposits
Does the fact that the managing agents bill the tenants directly for water and electricity have any bearing?
RE: RE: RE: RE: Deposits
No. Michael. The owner is still responsible.
RE: RE: RE: RE: RE: Deposits
I guess the gist of my query is: can the MA demand an increased deposit without referring to the trustees?
RE: RE: RE: RE: RE: RE: Deposits
I think that the answer to your query is fully covered by Prof Paddock's response.
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