The City of Cape Town. Image Credit: IOL.
(The Post News) – Following a proposed monthly cleaning tariff, which is not a pay-as-you-use utility service, landlords and tenants in the City of Cape Town are being urged to review their rental agreements. This means it is a mandatory fixed charge that would apply to all residential properties, including sectional title units and vacant land.
In the 2025 budget, the City of Cape Town introduced a new set of fixed charges to help maintain the city, namely the cleaning tariff, the fixed water charge, and the fixed sanitation charge. The cleaning tariff is intended to fund the upkeep of public spaces across the city.
Rowan Terry, legal counsel at TPN from MRI Software, criticized the classification of the cleaning tariff as ambiguous. He noted that it should be considered a rate or levy rather than a tariff, since the fee is not based on usage, and the city’s cleaning operations will remain unchanged.
The City of Cape Town is being taken to court by the South African Property Owners Association (SAPOA), which represents some of the country’s largest property investment companies. SAPOA argues that proper legislative processes were not followed in introducing the charge, particularly if it is treated as a utility, as public utility charges must go through multiple approval channels. Terry said this procedural lapse could render the tariff unconstitutional.
He adds that the specificity of the title—utility, rate, or levy—will determine who is ultimately responsible for payment. If, after review, it is deemed a utility, the responsibility will lie with the tenant. Landlords with lease clauses passing on these charges would be able to recover costs from the tenants. However, if classified as a rate or levy, landlords may need to absorb the cost or adjust rent with proper notice.
Terry urged landlords and tenants to act proactively. “Understand whether this falls under your responsibility or not, and then start negotiating either a cancellation or an adjustment,” he said. The tariff is projected to add additional pressure on Cape Town’s already high and scarce rental market.
Please share your thoughts, contact Lukhona via email: journalist-lukhona@thepostnews.net
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