Property glossary
Arrears
Also known as: overdue amounts, outstanding balance
Amounts a tenant or owner owes that are past their due date, such as unpaid rent or outstanding levies.
Definition
Arrears are amounts that have fallen due but remain unpaid — overdue rent owed by a tenant, or unpaid levies and charges owed by an owner in a community scheme. They are tracked as a running balance against the debtor and usually grow with interest, recovery costs and successive unpaid instalments. Managing arrears means monitoring ageing balances and following a structured collection process before resorting to legal action.
In the South African context
For rental arrears, the landlord-tenant relationship is governed by the lease together with the Rental Housing Act 50 of 1999 and the Consumer Protection Act, which set out notice and cancellation requirements before eviction can be sought under the PIE Act. For scheme arrears, a body corporate may recover unpaid levies (with interest set by the trustees within limits), and disputes over arrears can be referred to the Community Schemes Ombud Service under the CSOS Act 9 of 2011. Recovery steps must follow due process rather than self-help.
Example
A tenant on a R10 000 monthly rent who misses two months sits R20 000 in arrears; an owner who has not paid R2 000 levies for three months is R6 000 in arrears on the levy roll.
Why it matters
Arrears directly erode landlord and scheme cash flow, so early detection and a consistent, lawful collection process are essential to keep a property or scheme solvent.
Informational only — not legal advice. Confirm specifics against the current Act and your scheme’s rules.
Sources
- Rental Housing Act 50 of 1999 — Governs residential lease obligations including payment of rent
- CSOS Act — Community Schemes Ombud Service Act 9 of 2011 — dispute resolution for unpaid levies and scheme financial disputes