PROPERTY NEWS - Many renters are going to feel trapped - and possibly even terrified - by the effects of the coronavirus, particularly if the forced lockdown impacts on their ability to pay their monthly rent. 

Anxiety about this is not unusual, because a basic characteristic of all living organisms is the need for shelter that will keep us protected and make us feel secure.

Being forced by the lockdown to stay in your current accommodation for three weeks, you cannot pursue other, more affordable accommodation options. And compounding the anxiety even more for some, is the 'how' of paying for the necessity of accommodation.

If you are in the situation where your income is threatening your ability to pay rent, you must take action now rather than later.

The word "money" has the power to provoke extreme human emotions. If your income has been impacted by your inability to work during lockdown, or even worse, you have no income, you may feel overwhelmed by the potential consequences of your commitment to a lease agreement.

You need to press pause. Amid the millions of thoughts and dire consequences you are imagining, there may be a solution, and if you can't find it, there are organisations that have stepped up to help you navigate through an existing lease agreement.

Banks, for example. As guided by the Banking Association of South Africa (Basa), and the country's laws and regulations regarding the financial services market, banks have opened their collective hearts to their customers' plight, committing to review individual cases.

Digital banking services are available, and qualified consultants can be reached by telephone to professionally guide those in distress to a financial solution.

Further reassurance comes from the chief operating officer at SA Property Investor's Network (Sapin), Dave McGlashan, who is similarly empathetic towards tenants that have to meet their obligation to pay rent as per the terms of their lease.

"Landlords also have financial obligations to meet, so common ground must be sought," says McGlashan. "With the uncertainty of having no clear end date to the effects of the coronavirus, we are advising landlords to accommodate the situation by putting in place a deposit utilisation or a rental deferment agreement."

McGlashan advises that a middle ground must be reached with kindness and consideration of one another's predicament. "We suggest that a compromise can be made by both parties where the tenants should pay an achievable rent, and landlords should be flexible by offering rental deferment and/or a deposit utilisation."

Alleviating any anxiety you may be feeling is the most important contributor to maintaining your health.

McGlashan also highly recommends a visit to a TPN Credit Bureau, a company that specialises in collecting information about tenant behaviour and rental payment profiles. In response to the Covid-19 disaster, TPN, along with SSLR Inc and Fullard Mayor Morrison Inc, has developed a complimentary Rental Recovery Pack aimed to foster negotiation and agreement between landlords and tenants.

Michelle Dickens, TPN's managing director and founder, describes the mechanisms contained in the Rental Recovery Pack, an Income Declaration application for tenants, and a Deposit Utilisation Agreement and/or Rental Deferment Agreement:

"The Income Declaration Agreement enables tenants to officially declare to the landlord that their income has been affected due to the state of disaster / lockdown, be this through part or full loss of income, retrenchment, temporary forced unpaid leave, or even shortened working hours. 

"The property manager or landlord can verify this with the tenant's employer and request supporting documentation."

Dickens emphasises that in using this agreement, it is very important that the landlord is satisfied that the tenant has displayed good rental payment behaviour in the past.

The Deposit Utilisation Agreement and/or Rent Deferment Agreement can be used by landlords in recognising or acknowledging the Income Declaration Agreement and thereby enact repayment terms that work in both parties' favour. 

"In the first agreement, the tenant may agree for the deposit to be used in lieu of rent with the understanding that he/she will reinstate the deposit in instalments once the state of disaster has been lifted," says Dickens.

"The Rent Deferment Agreement confirms the arrangement for repayments of any rent missed or deferred to a later date, and obviously legally binding."

These documents provide the landlord with an immediate solution to cash flow problems, and for the tenant, there is reassurance that financial damages can be mitigated, albeit at a later date. TPN has also provided a YouTube video that provides clarity on the steps that can be taken in each scenario, and a help desk can be called for legal advice and guidance (0861 876 000).

Alleviating any anxiety you may be feeling is the most important contributor to maintaining your health. If you know that you can engage with solution providers, such as your landlord or your bank, to address your inability to pay your obligations, you should do this in the early days of lockdown.

Postponing taking action will only lead to heightening your stress levels.

The coronavirus and the lockdown may have isolated us physically, but ironically they have also brought us together in mind and spirit. No matter what your circumstances, there are people and organisations that are working to help you. Explore the internet, stay alert to news announcements, speak to those with knowledge.

Most importantly, speak to your landlord. He/she may have the same anxieties as you, which will be common ground upon which to base an agreement.

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