07/11/2025
By Marlon Shevelew Director Marlon Shevelew and Associates Inc / 25 years in law/ 25 legal areas / 60 awards
When is a Landlord Acting "in the Ordinary Course of Business"? The Supreme Court of Appeal’s decision in Els v Venter is essential reading for anyone involved in residential property letting. It sharpens our understanding of when a landlord’s activities cross the threshold into “the ordinary course of business” and thus, when the Consumer Protection Act (CPA) applies.
The Legal Principle: Substance Over Form
The CPA doesn’t define “ordinary course of business.”
In Els v Venter, the SCA made it clear: it’s not about labels or contract wording, the reality of the landlord’s conduct is what matters.
The test asks whether the letting forms part of a business-like, ongoing pattern aimed at generating income. An isolated or incidental letting (such as temporarily leasing your home while abroad) generally falls outside the CPA.
Key Criteria from the SCA
To determine supplier status, South African courts objectively consider a range of factors:
Regularity & Volume: Multiple rentals or property turnover suggests business activity.
Marketing & Organisation: Ongoing advertising or using agents points to a business motive.
Income Generation: A regular pattern of rental income, even alongside other work, tilts toward CPA coverage.
Formal Structure: Having a registered property business is a significant indicator, though not required.
Purpose of Letting: Is the rental a sustained investment or merely to cover temporary circumstances?
No single factor is decisive, a holistic, real-world assessment is made based on all the evidence.
Can Landlords “Opt Out”?
Some landlords try to position their rentals as “once-off” or personal. The SCA warns that courts prioritise substance over form: a disclaimer in your lease won’t help if your conduct is business-like. However, genuinely incidental, private, or unplanned lettings are less likely to fall within the Act.
Practical Guidance for Property Professionals
Advising clients: Evaluate not just the lease, but the landlord’s broader pattern: Is this truly a single event, or part of a continuing rental activity?
Risk Mitigation: If avoiding CPA classification is important, landlords should minimise regular marketing, avoid using agents for multiple properties, and clearly document the personal, non-commercial motive for letting.
Stay Alert: Circumstances change. A landlord who moves from personal, once-off letting to ongoing, marketed property investment may find themselves within the CPA’s reach, even if their contracts say otherwise.