The Johannesburg Social Housing Company (JOSHCO) remains committed to providing fair and transparent rental management practices, ensuring tenants are given multiple opportunities to meet their obligations before eviction proceedings are initiated.
Understanding that tenants may sometimes experience financial difficulties, JOSHCO has implemented a structured yet compassionate approach to rental arrears, offering grace periods and multiple reminders to help tenants retain their homes.
Acting CEO Nokwazi Mtshali emphasised the importance of balancing accountability with empathy: “At JOSHCO, we understand that life can present unexpected challenges, and we are committed to supporting our tenants during difficult times. However, it is equally important for tenants to fulfil their obligations to ensure the sustainability of our housing programmes. Our processes are designed to be fair, transparent, and supportive, giving tenants every opportunity to resolve arrears before escalation.”
JOSHCO also stresses that tenants have a strong obligation to adhere to the terms of their lease agreements. Timely rental payments are essential for maintaining a good tenant standing and ensuring that JOSHCO can continue to operate sustainably and provide affordable housing to the community. As a social housing entity, JOSHCO is expected to generate revenue to maintain its operations and fulfil its mandate effectively.
It is essential that tenants note that rent is due on or before the first of every month. However, should a tenant miss this deadline, the following steps are undertaken to provide ample opportunity for rectification:
1. Grace Period & Interest Reversal: If payment is not made on the first of the month, JOSHCO’s system automatically charges late payment interest on the outstanding balance. However, tenants are granted a seven-day grace period to settle their dues. If full payment is made within this period, the system reverses the late payment interest charged from the second day of the month.
2. Reminders & Communication: If no payment is received within the grace period, JOSHCO proactively reaches out to tenants through SMS notifications, phone calls, and a formal late payment reminder letter urging them to settle their accounts.
3. Letter of Demand: Should the tenant still fail to make full payment within seven days after the reminder letter, a formal seven-day Letter of Demand is issued, emphasising the urgency of settling their account to prevent further action.
4. 48-Hour Notice: If the tenant has not responded to the Letter of Demand, JOSHCO escalates the matter by issuing a 48-hour notice demanding full payment of arrears. This serves as a final opportunity for tenants to fulfil their obligations.
5. Warning Notice of Lease Termination: If payment is not received within the stipulated 48-hour period, a warning notice of lease termination is issued. This document highlights the serious implications of continued non-payment and warns tenants of the potential consequences, including eviction.
Furthermore, for tenants whose arrears exceed R10,000, JOSHCO refers their accounts to External Debt Collectors (EDC) or the Tribunal Court for further legal action.
By implementing this structured yet considerate process, JOSHCO ensures fairness and transparency, giving tenants every opportunity to rectify their accounts before severe measures are taken. These steps reinforce JOSHCO’s commitment to responsible tenancy management while safeguarding the interests of both tenants and the broader community.
