The number of residential tenants classified as ‘squatting’ has progressively increased in South Africa in the past decade.
Tenants classified as squatting are defined as having not paid three consecutive months of rent and continuing to occupy the property in the fourth month.
TPN Credit Bureau said although this trend is cause for concern for landlords, the total number of tenants classified as squatting – fewer than five out of 1 000 tenants – remains small when compared with the number of tenants who do meet their rental obligations.
However, TPN said the Covid-19 pandemic has resulted in some tenants “abusing the system to their advantage, creating fear and uncertainty with the property investment market”.
This is a reference to government regulations issued during the pandemic in terms of the Disaster Management Act, which prohibited the execution of eviction, even if authorised by a court, for the duration of the lockdown.
This regulation was intended to protect tenants and consumers during the pandemic because of reduced and unstable income, which resulted from many companies forcing employees to make salary sacrifices, particularly during the hard lockdowns.
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