Rentals in sectional titles: a tricky landscape:
[an extract from an article by Kerry Dimmer – PROPERTY PROFESSIONAL – 21 October 2014]
A somewhat different approach needs to be taken when renting a property within a sectional title estate. As explained by André van Rooyen, head of sales at PayProp, the very nature of this type of development requires that a body corporate be set up to act as its custodian. This creates a platform for the trustees—usually the owners—to pass rules and regulations. “This safeguards their interests by preserving the value of their investment and ensuring the comfort and safety of the occupants overall, including tenants.”
Crucial importance of rules and regulations
The Sectional Title Act governs how estates of this nature operate, and this includes most apartment blocks (which are “sectionalised”). In summary – a sectional title development will always have a body corporate – as defined by the Sectional Title Act. Freehold estates – which are not established as Sectional Title, and therefore not governed by the Sectional Title Act – sometimes have a Homeowner’s Association (HOA), which implements and enforces agreed rules for the freehold homeowners to abide by.
Limiting rental agents/cies
This brings up the controversial question of whether the number of sectional title rental agents operating within an estate should be limited …
How can agents and agencies secure rentals easily in sectional titles?
Van Rooyen says that property owners in sectional title developments are looking for professional and compliant agents.
The Original Full Article can be Viewed here → https://propertyprofessional.co.za/2024/10/21/rentals-in-sectional-titles-a-tricky-landscape/