While many students are not to return to physical classes, many accommodation sites have been left unoccupied as a result. PHOTO: Curt Fourie
The past three months have seen many Stellenbosch student accommodations unoccupied due to the national lockdown. With Stellenbosch University (SU) permitting the return of only 33% of students back on campus, the financial pressure is beginning to mount for both students and landlords.
According to the owner and manager of Rawson Property Stellenbosch, Johan Hugo, premature cancellation of rental agreements has led to a loss of income for landlords.
“The few cancellations we’ve had, have impacted our business from an income perspective, but more seriously, it impacts the landlords who could sit with a loss of income for a big part of the year,” said Hugo.
Liesl Roos, a landlord in Stellenbosch, expressed that she is torn between showing the spirit of ubuntu and trying to protect her own livelihood.
“We’ve lost 50% of our tenants. They’ve had to terminate their leases halfway through the contract period, due to either not being allowed by SU to return or not being able to afford to pay the rent,” said Roos.
According to Roos, Stellenbosch landlords are not acting unethically by requesting payments for student flats.
“If you observe general rental contracts, obligations to monthly rental payments continue whether tenants are on holiday, sick in hospital or away on a work trip,” explained Roos.
SU aimed to ease financial pressure on those students living in SU residences by decreasing residential fees during the months of lockdown.
According to some of the students residing in Nooitgedacht rooms are usually occupied during this time of the year, however, the opposite has been the case this year.
PHOTO: Supplied/Block C Nooitgedacht Properties
According to Bryan Mvukwe, an SU student living in a university residence, the university also provided opportunities for students to cancel contracts.
‘We’re in the same storm, although not the same boat’
Melané Bester, a third-year SU student, said that the reality of paying the full rental for a place which is not occupied, has been an immense struggle.
“The lockdown has made it tough for our families financially. Having to pay rent for a place that is not even used, is just unbelievable,” said Bester.
However, according to Roos, landlords also need to cover expenses in various departments such as municipal accounts, property tax, refuse removal, and internet providers.
“I wish parents would have more empathy for the landlords. We are all in the same storm, although not necessarily in the same boat,” Roos said.
According to Hugo, Stellenbosch real estates have traditionally been a sound investment, and will remain that way.
“Property owners and investors know that this pandemic will end and that once it does, things will return to normal,” said Hugo.
Hugo also admitted that rental agencies were also noticing a substantial decrease in the value of property in Stellenbosch.