Major rule changes for estates and complexes in South Africa

Major changes affecting property owners and tenants in estates and complexes have been introduced, including rules on cannabis use, animal slaughter, domestic workers, evictions and short-term rentals.

These changes were contained under a directive the Community Schemes Ombud Service (CSOS) published in July. PayProp explained that, under this directive, schemes that have set “undesirable rules” must remove them.

Although the CSOS has not published a complete list, it has shared a few examples that may affect landlords, including –

• Rules requiring disputes between owners or between the owner and the body corporate are to be resolved through private arbitration
• Any rule that debits or charges members without either their consent or a ruling from a judge, adjudicator or arbitrator
• Rules preventing owners from choosing an alternative domicile in case they don’t reside in their unit
• Any rule under which the body corporate can force an owner to evict a tenant

Some rules affecting tenant behaviour must also be scrapped. For example, complexes may not prevent occupiers from eating on the common property.

However, schemes may still prohibit the consumption of alcohol or any intoxicating substances in the common property.

The CSOS also held that complexes and estates may not prevent occupants from using or growing cannabis in their own units.

“The use or possession of cannabis by an adult in private for an adult’s personal consumption in private is permissible,” the directive stated.

They also may not prevent tenants from slaughtering animals for religious or cultural purposes, as this goes against the Constitution. However, estates and complexes may impose conditions for slaughter.

For example, tenants may be required to give two weeks’ written notice of the practice, specifying the time, place, type of animal to be slaughtered, and the details of the person registered to perform the slaughtering.

Failure to comply with the requirements set out above will entitle the body corporate to prevent the act of ritual or cultural slaughtering from taking place on the premises or penalising the owner with a fine.

Changes for domestic workers, evictions, and Airbnb

The directive also entails changes for domestic workers. Rules that domestic workers are not allowed to receive visitors and not allowed to talk to one another on common property were deemed undesirable.

Estates and complexes may also no longer prohibit domestic workers from walking around the common property without a name tag or pass or refuse a domestic worker entry to the common property.

The directive also holds that the body corporate cannot force a member to evict their tenant, as this is unreasonable, irrational, and unconstitutional.

They also cannot be forced to evict a short-term rental tenant due to non-compliance with the Community Scheme rules. However, estates and complexes can enforce penalties for non-compliance with the rules.

The CSOS also held that complexes and estates cannot have a rule permitting illegally parked vehicles to be towed.

However, they may impose a penalty or provision for the clamping of the wheels of the illegally parked vehicle if this is in the respective rules.

Body corporates may also no longer restrict the letting or sale of units to certain specified property practitioners. For example, the body corporate may not have a rule requiring that short-term letting can only be done through AirBnB.

This change seeks to end local monopolies and open up competitive opportunities in estates and complexes.

“The directive marks a pivotal step towards harmonising governance in South Africa’s community schemes,” said PayProp’s head of regulatory compliance Jan Davel.

“Beyond addressing unfair practices, it provides clear guidelines to foster inclusive, well-maintained estates and complexes.”

“This initiative not only safeguards property values but promotes a sense of community by ensuring rules align with fairness and constitutional principles.”