The national lockdown has impacted every part of the economy, with dire results for workers in every industry. Reduced incomes and increased unemployment is wreaking havoc for families across the country. Some may even may lose their homes. What should you do if you can’t afford to pay your rent?
Here is some advice from Adrian Goslett, CEO of RE/MAX Southern Africa: “If a person has been a reliable tenant, then a landlord will likely be open to negotiating with them. I would recommend that tenants first speak to their landlord to see if some other arrangement can be reached.” This could include payment holidays, reduced payments for a time, or allocating deposit amounts in lieu of rental. It is important to understand that these arrangements only defer the amount owed, and do not write the amount off.
If an alternative payment plan cannot be agreed upon, you should consider terminating your lease. But only after you have carefully reviewed your lease for any penalties as a result of early cancellation. Your landlord may be open to allowing you to sublet your home. If not, maybe you can find another tenant who can take over your lease directly. If you need to downscale to a more modest home, take care to consider your future financial constraints.
The bottom line? Make sure you and your landlord reach mutual, written agreements with respect to your contract. A reliable tenant is a valuable asset for a landlord in trying economic times, and they may be as eager to keep you in your home as you are!
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