Foreign tenants have to be 'legal'

As the demand for rental properties continues to recover, landlords need to know that there are certain limits on letting homes to anyone who is not a South African citizen.

Despite its problems, SA is still seen by many multinational companies as the most attractive gateway to Africa and they continue to invest millions in their continental headquarters and operations here, and to send executives and professionals to work on contract in SA. On the other hand, many top business people from Africa also want to have a base here so that they can interact easily with their international counterparts.

Upmarket rentals homes in certain parts of SA are also still very popular among European "swallows" seeking a respite from the northern winters, and on top of that, SA is one of the top 10 diplomatic centres in the world in terms of the number of embassies, high commissions and consulates, which adds to the non-citizen demand for rental properties.

However, exciting as this is for landlords, who have experienced extremely tough times for the past two years, they need to ensure that they don't break the law when letting their property to a foreign tenant.

The Immigration Act defines a "legal foreigner" as a person in possession of either a valid visa that entitles them to study, work or do business in SA for a certain period, or a permanent residence permit approved by the Department of Home Affairs, and there are no restrictions on renting to anyone who fits this description.

On the other hand, the Act makes it a criminal offence to let a property to an "illegal foreigner" - meaning any non-South African who is not in possession of the correct documentation. Such a transaction is regarded, in terms of the Act, as the equivalent of aiding and abetting an illegal immigrant, and is thus a serious offence punishable on conviction by a fine or a jail term of up to 18 months.

Consequently, any landlord who is approached by a prospective tenant who is not a South African should not only enquire whether this person is in South Africa legally, but also obtain documentary proof of this before allowing them to sign any lease.

Even better, they should appoint a reputable managing agency that will check this documentation upfront, along with the tenant's credit record and employment details, in order to lower their financial as well as their legal risks.