Landlord Help

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silkman

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My uncle has a building with some shops. The electricity metres (post paid) are all on the tenant's names- ie individual metres for each shop. One of the tenants has vacated the premises and the new tenant is unable to get the metre changed to his name as the old guy has an unpaid bill of R90 000 that has accumulated over months! To top it all the council has said that if they can't recover the money from the old tenant, the landlord is responsible? Surely this is not correct as the landlord did not sign any acknowledgement of debt or surety for the account. Also, why did the council allow this to continue for months- it was their responsibility to cut the tenant off if he didn't pay?
My uncle is over 70 years old and this is stressing him out.
Any help?
Thanks in advance.
 
silkman said:
My uncle has a building with some shops. The electricity metres (post paid) are all on the tenant's names- ie individual metres for each shop. One of the tenants has vacated the premises and the new tenant is unable to get the metre changed to his name as the old guy has an unpaid bill of R90 000 that has accumulated over months! To top it all the council has said that if they can't recover the money from the old tenant, the landlord is responsible? Surely this is not correct as the landlord did not sign any acknowledgement of debt or surety for the account. Also, why did the council allow this to continue for months- it was their responsibility to cut the tenant off if he didn't pay?
My uncle is over 70 years old and this is stressing him out.
Any help?
Thanks in advance.
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Property owner is responsible unfortunately....

He can go after the ex-tenant, but the municipality won't budge on the money or changing the meter.
 
Hey bud. Yeah, unfortunately the council will always hold the landlord liable for the payment of the outstanding account. Your uncle will have a claim against the ex-tenant for the recovery, but he will have to sort it out with Council before they will open the account in the tenants new name. Is this in Ekurhuleni by any chance?
 
ToxicBunny said:
Property owner is responsible unfortunately....

He can go after the ex-tenant, but the municipality won't budge on the money or changing the meter.
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Surely this can't be right? How can you be responsible for someone elses debt if the account is in the tenants name?
 
Napalm2880 said:
Surely this can't be right? How can you be responsible for someone elses debt if the account is in the tenants name?
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Yeah it is very unfair. What is the point of opening accounts in the tenants name at all then? But Ekurhuleni snuck a sneaky by-law in a few years back to let them do it. Also sitting with a situation where a tenant ran up an account left, and I had to enter into an agreement with the council to pay them off. And even then, they will still use the ex-tenants account until the account is settled in full and only after that will they close that account and open it in new tenants name.
 
TRZ214 said:
Yeah it is very unfair. What is the point of opening accounts in the tenants name at all then? But Ekurhuleni snuck a sneaky by-law in a few years back to let them do it. Also sitting with a situation where a tenant ran up an account left, and I had to enter into an agreement with the council to pay them off. And even then, they will still use the ex-tenants account until the account is settled in full and only after that will they close that account and open it in new tenants name.
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Jip the responsibility falls back to the owner so owners should check the everything is up to date and never trust your tenets.
 
A lawyer once told me that a municipal debt is written off after 3 years and that recovery of a debt older than that can be challenged. Not a lawyer so not sure how true or even whether that applies here. Maybe some of the outstanding debt is older than 3 years?
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eXisor said:
A lawyer once told me that a municipal debt is written off after 3 years and that recovery of a debt older than that can be challenged. Not a lawyer so not sure how true or even whether that applies here. Maybe some of the outstanding debt is older than 3 years?
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I think this is wrong normal debt prescribes after 3years but municipal debt you take to the grave.
 
rietrot said:
I think this is wrong normal debt prescribes after 3years but municipal debt you take to the grave.
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Nope....

Its partially right from my understanding.

Utilities etc is normal debt, prescribes in the same manner as all other debt.

Rates and such is a tax, and that is 30 years.
 
Napalm2880 said:
Surely this can't be right? How can you be responsible for someone elses debt if the account is in the tenants name?
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Unfortunately what happens if you, as a landlord, do not keep tabs on your accounts.... Never, in any place that I rented, personal or business, did any electricity account go into my name. Landlords ALWAYS managed that. Tried to get away with something, and now he pays the price.
 
Can confirm that 3 years is for electricity and water, tax etc is much longer, like 30 years or something. We had our account closed by CoJ in 2010 and after begging them to open it again and allow us to start paying they never got it right. Had to pay a fixer to basically get council to accept our money. Fortunately they could legally only go back 3 years and actually gave us a big discount so we ended up scoring out of the deal. Had to get it sorted as the complex had no certainty on our financial standing until resolved.
 
Pixelbender said:
Unfortunately what happens if you, as a landlord, do not keep tabs on your accounts.... Never, in any place that I rented, personal or business, did any electricity account go into my name. Landlords ALWAYS managed that. Tried to get away with something, and now he pays the price.
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Yay for you, but I don't see how was he trying to get away with something. A tenant used the electricity and should have paid for it. How is that not fair?
.
 
Cius said:
Can confirm that 3 years is for electricity and water, tax etc is much longer, like 30 years or something. We had our account closed by CoJ in 2010 and after begging them to open it again and allow us to start paying they never got it right. Had to pay a fixer to basically get council to accept our money. Fortunately they could legally only go back 3 years and actually gave us a big discount so we ended up scoring out of the deal. Had to get it sorted as the complex had no certainty on our financial standing until resolved.
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Good to know. Thanks for confirmation.
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eXisor said:
Yay for you, but I don't see how was he trying to get away with something. A tenant used the electricity and should have paid for it. How is that not fair?
.
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By not managing his accounts or expenses. He might have a contract telling the tenant to pay. But how did he ensure the tenant pays or not? He obviously didn't. Can't trust anybody with money these days. Whether shes cute or has a nice smile or not.
 
Pixelbender said:
By not managing his accounts or expenses. He might have a contract telling the tenant to pay. But how did he ensure the tenant pays or not? He obviously didn't. Can't trust anybody with money these days. Whether shes cute or has a nice smile or not.
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nvm
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