Landlords say that they are in between a rock and a hard place because they have to consider eviction while also dealing with having to incur the costs.
Image: IOL / Ron AI
The burden of covering municipal bills and student accommodation costs weighs heavily on the shoulders of landlords as they wait for payouts from the National Student Financial Aid Scheme (NSFAS).
*Khanyile Ndlovu, not his real name, is a landlord of three different student accommodations based in Gqeberha, Eastern Cape.
He and two of his partners are investors in buildings that can accommodate 202 students. He said they are frustrated with NSFAS due to delays in payments, which affect students’ ability to pay rent.
Although landlords understand that the institution manages millions of students and that administrative processes may take time, he said there should be a better system to protect landlords from incurring ongoing costs.
"Because if they expect students to move into student residences at the beginning of February, then that means landlords will have to cover expenses such as electricity, water, Wi-Fi, and other utilities that students need."
Ndlovu said there should be a system that pays landlords directly, starting with confirmation that students staying on the property are funded by NSFAS and registered with the university, followed by monthly payments directly to landlords.
"The inconvenience of having to wait for money and not knowing when it will be paid each month leaves us with cash flow issues and destroys relationships with banks because bond repayments are missed," he said.
Ndlovu added that paying staff members has also been a challenge. At the same time, the threat of being disconnected from municipal services draws nearer as payments are missed.
He is also part of a WhatsApp group of more than 2,000 landlords who own buildings accommodating students throughout the Western Cape and Eastern Cape.
He said more than half of these landlords are experiencing similar challenges, with some having seriously considered evicting students to manage the costs. However, many have chosen not to speak publicly out of fear that doing so could compromise their relationship with NSFAS.
"Landlords are in between a rock and a hard place because we have to consider eviction while also dealing with having to incur the costs," he said.
In response, NSFAS spokesperson Ishmael Mnisi provided clarity on when payments should be expected, which he said will help alleviate landlords’ challenges.
"The first disbursement for 2026 is scheduled for March 2, 2026," he said.
Mnisi also said the initiative undertaken by the institution in 2025 aimed to verify and validate outstanding claims from accommodation providers, helping them understand identified issues and how to resolve them.
During these engagements, several critical issues were identified. These include institutions not confirming their students on time, resulting in students being excluded from the current disbursement run and having to wait until the subsequent cycle.
"Some institutions are classifying their students as qualifying solely for transport allowances instead of private accommodation, leading NSFAS to pay transport allowances directly to students rather than accommodation providers."
Mnisi confirmed that all invoices have been received and verified.
"Any accommodation provider experiencing challenges with payment can reach out to NSFAS for support. Without details of the accommodation providers, it would be challenging for us to respond to individual matters," he said.
lilita.gcwabe@inl.co.za