Confusion surrounds service bills By law
Daily News Tuesday October 28 2013
Confusion surrounds service bills
By law, landlord must pay
THE payment for water and electricity consumption can result in conflict between tenant
and landlord or the letting agent.
The landlord is responsible for payment to the municipality when these service charges
are included in the rentals.
Services supplied by local authority to the property relates to the owner of the property or
to its occupiers.
For the occupiers to be liable there must be an agreement either between the owner and
the occupier or between the occupier and the local authority.
In the absence of such an agreement, it is
implied that the owner would be burdened with
the payment for services.
The Constitutional Court handed down a
judgment in 2005 that ultimately holds the
owner responsible for all outstanding amounts
regarding consumption charges due to the local
authority even if the account is in the tenant or
non-owner occupier’s name.
In Mkontwana v Nelson Mandela Metropolitan
Municipality 2005 (1) SA 530 (CC), the court
held that there were measures owners and the
municipality could use to prevent non-payment
that resulted in the accumulation of consumption
charges.
Municipalities were legally responsible to send
out regular accounts, develop a culture of
payment, disconnect the supply of electricity and
water in appropriate circumstances, and take
appropriate steps for the collection of amounts
due.
“The owner’s ability to protect her own
interest by ensuring that consumption
charges are kept within reasonable limits
depends to some extent on the nature of the
relationship between her and the occupier.
If that occupier is on the property with the
knowledge and consent of the owner, the
latter can, amongst other things, choose the
occupier carefully and stipulate that proof
of payment in relation to consumption
charges be submitted monthly on pain of
some sanction including ejectment.”
Parties transpose their obligations in a written
lease contract or even agree orally that the tenant
would pay for certain services such as water and
electricity.
Mkontwana case
The owner or landlord usually required the
tenant to have the water and electricity account
in her name so that the tenant is directly
contracted to the local authority and liable for
the payment of the consumption charges.
After the Mkontwana judgment, several
municipalities amended their credit control and
debt collection policies, making mandatory for
owners to maintain the accounts in their own
names.
This provides security to municipalities, since
they do not have to bother with defaulting
tenants who failed to settle the debts with the
municipality and subsequently ‘disappear’.
Some landlords and their supervisors have used
this new policy to force tenants out of their
property, to pay a rental increase or to ‘punish’
tenant activists by closing the account.
Since July 1, 2012, a new tenant in the
eThekwini region cannot have an account for
municipal services in their name.
There are instances of landlords failing to pay
the service charges resulting in the disconnection
of water and electricity supply.
Some landlords and their agents state the
municipal service charges due on an invoice or
piece of paper.
This has caused hardships to tenants who are
unable to go to court to enforce their rights to
uninterrupted
services
and
to
claim
compensation for breach of contract.
A tenant has the legal right to examine the
original consolidated municipal bill before
making payment.
The landlord is also obliged to present proof of
payment to the tenant once the tenant has paid
the amount requested.
Where water and electricity charges are included
in the rental, the landlord is still under duty to
disclose proof of payment to the tenant when
requested to do so.
Municipalities have secured their interests by
consolidating accounts and have the power to
disconnect for an owner’s debt incurred on the
property occupied by the tenant or another
property.
Such is the power of a consolidated account that
burdens tenants when the landlords’ municipal
debts are not paid on properties not even
occupied by their tenants.
Tenants have no security even after diligently
paying for municipal charges to the landlord.
Dr. Sayed Iqbal Mohamed, Chairperson, Organisation of Civic Rights. For tenant’s rights’ advice,
contact Loshni Naidoo or Pretty Gumede at 031 304 6451
Confusion surrounds service bills
By law, landlord must pay
THE payment for water and electricity consumption can result in conflict between tenant
and landlord or the letting agent.
The landlord is responsible for payment to the municipality when these service charges
are included in the rentals.
Services supplied by local authority to the property relates to the owner of the property or
to its occupiers.
For the occupiers to be liable there must be an agreement either between the owner and
the occupier or between the occupier and the local authority.
In the absence of such an agreement, it is
implied that the owner would be burdened with
the payment for services.
The Constitutional Court handed down a
judgment in 2005 that ultimately holds the
owner responsible for all outstanding amounts
regarding consumption charges due to the local
authority even if the account is in the tenant or
non-owner occupier’s name.
In Mkontwana v Nelson Mandela Metropolitan
Municipality 2005 (1) SA 530 (CC), the court
held that there were measures owners and the
municipality could use to prevent non-payment
that resulted in the accumulation of consumption
charges.
Municipalities were legally responsible to send
out regular accounts, develop a culture of
payment, disconnect the supply of electricity and
water in appropriate circumstances, and take
appropriate steps for the collection of amounts
due.
“The owner’s ability to protect her own
interest by ensuring that consumption
charges are kept within reasonable limits
depends to some extent on the nature of the
relationship between her and the occupier.
If that occupier is on the property with the
knowledge and consent of the owner, the
latter can, amongst other things, choose the
occupier carefully and stipulate that proof
of payment in relation to consumption
charges be submitted monthly on pain of
some sanction including ejectment.”
Parties transpose their obligations in a written
lease contract or even agree orally that the tenant
would pay for certain services such as water and
electricity.
Mkontwana case
The owner or landlord usually required the
tenant to have the water and electricity account
in her name so that the tenant is directly
contracted to the local authority and liable for
the payment of the consumption charges.
After the Mkontwana judgment, several
municipalities amended their credit control and
debt collection policies, making mandatory for
owners to maintain the accounts in their own
names.
This provides security to municipalities, since
they do not have to bother with defaulting
tenants who failed to settle the debts with the
municipality and subsequently ‘disappear’.
Some landlords and their supervisors have used
this new policy to force tenants out of their
property, to pay a rental increase or to ‘punish’
tenant activists by closing the account.
Since July 1, 2012, a new tenant in the
eThekwini region cannot have an account for
municipal services in their name.
There are instances of landlords failing to pay
the service charges resulting in the disconnection
of water and electricity supply.
Some landlords and their agents state the
municipal service charges due on an invoice or
piece of paper.
This has caused hardships to tenants who are
unable to go to court to enforce their rights to
uninterrupted
services
and
to
claim
compensation for breach of contract.
A tenant has the legal right to examine the
original consolidated municipal bill before
making payment.
The landlord is also obliged to present proof of
payment to the tenant once the tenant has paid
the amount requested.
Where water and electricity charges are included
in the rental, the landlord is still under duty to
disclose proof of payment to the tenant when
requested to do so.
Municipalities have secured their interests by
consolidating accounts and have the power to
disconnect for an owner’s debt incurred on the
property occupied by the tenant or another
property.
Such is the power of a consolidated account that
burdens tenants when the landlords’ municipal
debts are not paid on properties not even
occupied by their tenants.
Tenants have no security even after diligently
paying for municipal charges to the landlord.
Dr. Sayed Iqbal Mohamed, Chairperson, Organisation of Civic Rights. For tenant’s rights’ advice,
contact Loshni Naidoo or Pretty Gumede at 031 304 6451