Who Pays Levies: Landlord or Tenant?
Category Article
The responsibility for paying levies in a property depends on the terms outlined in the lease agreement. However, there are standard practices in South Africa that guide this:
1. Standard Practice
- Landlord's Responsibility: Levies are typically considered part of the ownership costs and are paid by the landlord. This includes contributions to the body corporate or homeowners' association for communal expenses like maintenance, security, and insurance.
- Tenant's Contribution: Tenants usually pay for utilities and rent but are not directly responsible for levies unless explicitly stated in the lease agreement.
2. Exceptions
- Lease Agreement Terms: In some cases, landlords may include levy payments as part of the rent or pass them on to the tenant. The tenant agrees to this responsibility when signing the lease.
- Commercial Properties: For commercial leases, it's more common for tenants to cover operational costs, which can include levies, especially in triple-net leases where tenants take on more expenses.
3. What Should Landlords and Tenants Do?
- Landlords: Clearly specify in the lease who is responsible for levies to avoid disputes.
- Tenants: Review the lease agreement carefully to understand your obligations, especially for commercial leases where terms may differ.
Key Considerations
- Levies are typically the landlord's responsibility unless explicitly transferred to the tenant in writing.
- Transparency in lease agreements helps avoid confusion and disputes.
Disclaimer: The information provided is for general guidance only. While care has been taken to ensure accuracy, Vermaak Properties does not accept liability for any errors or omissions, nor for any loss or damage arising from reliance on this content.
Author: Slate Volschenk