IN WHOSE FAVOUR DOES THE SCALE TIP?
(STBB Attorney's)
In this ground-breaking judgment, the Constitutional Court affirms the rights of tenants to challenge the contractually valid termination of their leases, if it constitutes an unfair practice as provided for in the Rental Housing Act.
The circumstances here were that the landlord upgraded the premises, cancelled the existing leases and then offered the premises back to the tenants at increased rentals. Such conduct may be unfair, the Court held, and obliged the parties to refer the issue to the Rental Housing Tribunal for determination.
Whilst the outcome is humane and protective of vulnerable citizens, it raises concerns as to how the decline of urban residential leases can be reversed if the landlord-developer struggles to earn a realistic return on the upgrade of the building.
Read the full judgement (from STBB Attorney's)
Read the summary of the full judgement (from STBB Attorney's)
