MAIN IMAGE: Rowan Terry – senior legal counsel at TPN Credit Bureau, Elize le Roux – MD of Xpello, Samuel Seeff – chairman of the Seeff Property Group
Senior writer
The proposed amendments to South Africa’s Prevention of Illegal Eviction from and Unlawful Occupation of Land (PIE) Act have generated debate around the rights of tenants facing eviction, unlawful occupation, and property ownership. While the amendments do not fundamentally rewrite eviction law, they do redefine how agents and managing agencies should approach the entire rental documentation process.
If enacted, the amendments will require courts to look beyond whether a tenant has breached a lease. They will increasingly examine why the occupation became unlawful; the occupier’s personal circumstances and health; previous living arrangements; and whether alternative accommodation is realistically available.
Court decisions will, therefore, become increasingly dependent on documented facts rather than broad assumptions, effectively shifting rental management from an administrative function to an evidence-based compliance function if an eviction is to satisfy the court’s “just and equitable” test.
Building the evidence trail
According to Rowan Terry, senior legal counsel at TPN Credit Bureau, “evidence” in practice includes comprehensive lease agreements, tenant applications, bank statements, proof of payment, salary slips, payment records, breach notices, and all relevant correspondence.
“Together, these documents help demonstrate how the tenancy began, how any default developed, and what reasonable steps were taken before eviction became necessary. A detailed paper trail could be the difference between losing an eviction application and obtaining an eviction order. The better your records, the stronger your case is likely to be before the court.”
But, he says, this should not be viewed as legislation favouring one side over another. “The Bill does not fundamentally shift the balance between unlawful occupiers and property owners. Instead, it builds on the existing PIE framework by giving courts clearer guidance on how to assess eviction matters.”
Terry says landlords and managing agents should begin treating record-keeping as one of the most important risk management tools available. “The biggest takeaway for landlords and managing agents is simple: good record-keeping has never been more important.”
The implication is obvious. Agencies with structured compliance systems will adapt relatively easily, but private landlords managing their own portfolios may find the new evidentiary burden considerably harder to meet.
According to Elize le Roux of Xpello, the most common reason landlords pursue eviction remains straightforward: tenants not paying their rent and refusing to vacate. “Losses run high, and landlords have no alternative but to seek an eviction.
“Landlords who self-manage often do not maintain proper records or clear rental statements, and do not follow the correct procedures when a tenant defaults. Not following the correct process, together with the added frustration of the tenant’s failure to keep to the lease agreement, can and does result in landlords taking the law into their own hands by illegally cutting the power, revoking access, and limiting water.”
Such actions not only undermine the landlord’s legal position but can also expose them to further legal challenges.
Mandatory mediation
Documentation is only one of the proposed changes. The Bill also introduces mandatory mediation in certain circumstances, a provision that may have unintended consequences for the rental industry.
Le Roux notes that this provision is currently intended to apply only to government institutions seeking eviction orders. However, she warns that if mediation is extended to private evictions, “it will definitely delay the process. Mediation cannot grant an eviction order, and we have already seen how matters referred to a tribunal can delay evictions.”
Le Roux adds that, should the amendments be signed into law, rental service providers are likely to increase their fees, “which will make evictions even more unaffordable for private landlords, deterring investors from investing in property.”
Impact on rental market
The proposed amendments arrive against the backdrop of growing investor interest in residential rentals. Samuel Seeff, chairman of the Seeff Property Group, says that demand for residential rental investments is expected to remain robust, especially in high-demand urban areas. However, he cautions that rental income only delivers value when landlords actively manage risk.
“Rentals are attractive investments as they can be a source of steady income and a growing asset, but the risk of a tenant defaulting on rent can quickly turn a valuable investment into a significant financial and emotional burden.”
That is why due diligence must extend beyond choosing the right suburb. “Prospective investors and landlords must therefore do their due diligence before committing capital,” says Seeff. “It is vital that prospective investors seek advice on the legal aspects, particularly around the PIE Act and the Rental Housing Act.”
Yet this creates an interesting paradox: while demand for rental housing remains strong, the legal and compliance environment surrounding rental management is becoming increasingly sophisticated.
As Seeff points out, “While the proposed amendments to the PIE Act are intended to provide relief, the risks remain real and can be consequential.
“To mitigate these risks and protect their investments, it is vital that landlords ensure they have a watertight lease agreement that protects their interests, and that they work with a credible rental agent with strong legal compliance and administration protocols to ensure proper vetting of tenants and management of the tenancy for full legal compliance.”
The proposed amendments do not make eviction significantly easier or harder, but they will raise the professional standard expected of everyone involved in rental management. For agencies, that means every application form, inspection report, payment record, and email could ultimately become evidence before a judge. In the new PIE environment, paperwork may no longer be merely administrative; it will be the landlord’s first line of legal defence.
