As Mogale City continues its drive to improve spaza shop compliance, registration and licensing, residents are reminded that operating a spaza shop from a residential property or renting out part of a property for this purpose may have implications for the property owner.
One of the requirements for obtaining a spaza shop licence is a zoning certificate, which confirms that the property is permitted to be used for business purposes. Residents should therefore ensure that the necessary zoning and approvals are in place before allowing a business to operate from their property.
Property owners who receive indigent support should also be aware that changes to the use of their property or additional household income may affect their eligibility for the subsidy. Rental income received from a spaza shop or other business activity conducted on the property will be taken into consideration when assessing whether a household continues to meet the qualifying criteria and applicable income thresholds.
The municipality’s Indigent Management Policy provides for indigent status to be withdrawn where a household no longer meets the qualifying criteria or where information provided during the application process is found to be inaccurate or has changed.
Residents are therefore encouraged to understand the implications before leasing any part of their property for business purposes and to ensure that all information submitted to the municipality remains accurate and up to date.
Property owners are also cautioned against registering a spaza shop on behalf of another person or allowing another person to operate a business using their details. Such arrangements may expose the property owner to legal, tax and regulatory risks, including potential liability for health, safety and other compliance contraventions associated with the business.
Before renting out your property for a spaza shop, make sure you understand the requirements, have the necessary approvals and know how the arrangement may affect your municipal benefits and responsibilities.
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