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Monday, February 10, 2025

Landlords are not allowed to demand deposits: NSFAS

By Johnathan Paoli

The National Student Financial Aid Scheme (NSFAS) called upon private accommodation providers this week to desist from demanding deposits or “top-up” payments from students.

NSFAS spokesperson Ishmael Mnisi said that following reports of landlords requiring students to pay additional fees before being allowed access to the accommodation was unacceptable in terms of the Standardised Fixed-Term Lease Agreement between them and the scheme.

“The Lessor may not require or permit the Lessee to pay a deposit, top-up payments, or any other forms of payment to the Lessor or any other person in connection with this agreement, including payment of rent while awaiting payment from NSFAS,” Mnisi said.

He clarified certain situations in which the student may be liable.

Mnisi said that any students who were defunded by NSFAS incorrectly, were not liable up until the date of being defunded.

However, where a defunded student chose to continue occupying the leased premises notwithstanding being defunded, they would be liable for the payment of rent.

Where a student was defunded due to a misrepresentation by either the student or their guardian, they must vacate the property immediately and would be financially liable.

If a student moved accommodation providers without the prior approval of NSFAS, the scheme may refuse to pay any rental to the new landlord.

There is an ongoing dispute between NSFAS and landlords, with the Private Student Housing Association (PSHA) engaging the scheme for payment owed from last year.

PSHA CEO KagisHo Mamabolo confirmed last month that a debt of R44 million remained outstanding, and gave the scheme two weeks to finalise repayment or evictions would begin.

Mnisi has, however, reiterated that no lessor shall have recourse against the student for any default in the payment of rent by NSFAS.

INSIDE EDUCATION

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