Pre-paid or overpaid?
Electricity issues...
- A recurring problem with rental properties is the issue of the cost of electricity with pre-paid meters.
- Private meter companies allow owners to set the tariff at which electricity is charged out at.
- Tenants complain that the private meter overcharge discrepancy can be as much as double with municipal charges of R750 giving 350 units of power and some private meters only 150 units for the same cost.
- Clearly the issue of pre-paid meters and the tariff applying should be incorporated in the lease agreement signed, and if not already in your lease, we would advise approaching the landlord with a suitable amendment to the lease.
- The following clause would suffice:
"The parties acknowledge that the property is supplied with electricity through a pre-paid meter, and the landlord undertakes to ensure that the tariff charged does not exceed the municipal supply rate for such power consumed".
HELP:
If you need help incorporating suitable clauses in your lease or amending an existing lease, give us a shout at 0870210123 or contact [email protected]