Loadshedding and your Lease
Category Market Insight
There can be no doubt that South Africans are under increased daily strain. A looming global recession, interest rate hikes, and loadshedding are putting pressure on a post covid society. Several sectors of the economy, including manufacturing, agriculture, textiles, and small businesses, have suffered because of loadshedding and its effects and the property sector is no exception.
Backup power at home
For many South Africans, the need for a backup power solution is greater than ever. The obvious solution would be a battery powered inverter, a solar inverter, or even a generator to power small appliances during extended periods of loadshedding.
For renters, finding a solution to the numerous stages of loadshedding is not as easy. A tenant renting a home or apartment will have fewer options for backup power because they do not own the property. This has left many landlords wondering if they should be responsible for providing alternative power solutions to their tenants, and tenants wondering why landlords are hesitant to provide these solutions.
If you are currently living in a rental property and trying to figure out whether or not you should be enjoying the benefits of an alternative power supply during loadshedding, we at FMS Sales & Leasing can offer some guidance.
Should landlords provide backup power?
Unfortunately, for tenants, during South Africa's various phases of load shedding, landlords are not responsible for keeping the lights on at their rental property. The installation of backup utilities like water tanks, inverters and generators, is an added expense to a property, and being without necessary utilities for extended periods of time is not the landlord's fault, therefore they should not be held responsible for the disruption of services.
Tenants can, however, discuss the option of installing a backup power supply on the property with the landlord or property manager, and if both parties agree to the terms of the installation, i.e., maintenance and insurance costs, in a contract, there will be no room for misunderstanding.
Who is responsible for backup power costs?
If the landlord agrees to install an alternative energy supply on the property, they are not obligated to offer the tenant a reduction in rental or utility costs; if anything, this will mean an increase in the monthly rental as the addition of a backup power supply can now be viewed as an asset to the property, making it more attractive on the market.
If you are looking to relocate into a rental property and being without electricity for extended periods of time is a concern, check with the landlord or rental agency about a backup power solution. And if you are a landlord looking to make your tenants more comfortable and you would like to increase your property value, installing a backup energy solution will be beneficial in the long term.
Home Improvements
Making sure you are prepared during different stages of loadshedding is important for managing our daily lives. Small improvements in the home can make a big difference, and if the option of getting your landlord to install a generator or inverter on the property is a non-starter, luckily there are alternative energy solutions that can help.
Author: FMS Sales and Leasing