Several landlords of private student accommodation across the Eastern Cape have raised concerns about alleged extortion by some student leaders, claiming they are being forced to pay monthly kickbacks to secure student placements in their residences.
The landlords, who did not want to be named, alleged that certain student leaders at the University of Fort Hare, Walter Sisulu University and Buffalo City College were demanding payments of between R100 and R200 a month per student accommodated in private residences.
They said the payments, which they had to pay in cash which they allege was at the insistence of student leaders to avoid a paper trail, were made monthly over a 10-month academic year.
Depending on the size of the residence, this can amount to between R10,000 and R44,000 a month — or as much as R100,000 to R440,000 over the academic year.
Several landlords said failure to comply resulted in students being diverted to other residences or compliance complaints being made against their facilities.
One East London landlord, who houses more than 220 students, said he had paid more than R800,000 over the past two years.
“This is not new. It has been happening for years,” he said.
“Because there is an accommodation shortage, student leaders recommend students to private establishments where NSFAS or the institution pays per student.
“But they demand R200 a student a month. With 220 students, that is more than R40,000 a month for 10 months.”
He claimed refusal to pay resulted in threats.
“They tell you they will not allow students to come to your residence in future and will raise compliance issues so that the university blacklists you.”
Another landlord, who houses more than 80 students, said he was no longer willing to pay.
“It is an open secret that money is paid so that students are placed at your establishment. Some landlords accept it because they know their residences will remain full.
“Those of us who refuse are accused of noncompliance and risk losing business.”
He said reporting the matter formally was difficult.
“We fear losing business. If students are not sent to you, your establishment collapses.”
They insisted on a meeting to discuss money. I asked them to put their demands in writing so that I would be clear, but they refused
— Landlord
A third landlord, who runs two residences housing about 220 students, said he had become “unpopular” after refusing to make payments.
“This year I have far fewer students compared to previous years because I am regarded as someone who does not co-operate.”
He claimed students were removed from one of his residences in 2025 after he refused to meet student leaders who allegedly wanted payment.
“They insisted on a meeting to discuss money. I asked them to put their demands in writing so that I would be clear, but they refused.
“Soon after, compliance issues were raised and students were moved to another residence.”
He believes he was being punished for refusing to pay.
“They victimise you if you don’t bow down to their money demands.”
Another landlord described receiving a call at 2am from a student who demanded R5,000 in cash.
“He sounded drunk and said I must prepare the money within 15 minutes. I asked for banking details so I could transfer it, but he refused, saying he did not want a paper trail.”
The landlord said he was told by others that anonymous complaints had previously been submitted to institutions, but no feedback was received.
Not all landlords view the payments negatively. One said he considered it a “cost of doing business”.
“I house over 200 students and earn between R700,000 and R800,000 a month. That is over R7m in 10 months.
“Paying R400,000 a year is manageable if it keeps the business stable.”
Walter Sisulu University spokesperson Yonela Tukwayo said: “WSU management is not aware of any allegations or formal reports of extortion involving student leaders and private accommodation providers.
“Extortion is a serious common-law offence. Landlords who believe they are victims should report the matter to the police.
“The university does not condone unlawful behaviour and will co-operate with law enforcement if a formal case is opened.”
University of Fort Hare spokesperson JP Roodt echoed these comments.
“The university has not received any formally lodged complaints implicating recognised student leadership structures or registered student organisations in acts of extortion.”
Roodt said affected landlords should report allegations formally to the university and police.
“The university cannot act on allegations that are not formally reported or supported by verifiable information.”
Zolani Chola, Buffalo City College’s deputy principal for corporate services, said the college was also unaware of the claims.
“The college has around 1,300 students in private accommodation.
“Each facility is graded and a maximum of R5,200 a student a month is paid. We have not received complaints on this matter.”
Any student leader found demanding gratuities must face disciplinary action
— Kabelo Mogatosi, DA Student Organisation representative
However, DA Student Organisation representative Kabelo Mogatosi said the practice had been happening for years.
“It begins as early as January when some SRC members position themselves as intermediaries between students and private accommodation.
“Students are placed according to affiliations, and in some cases placements are influenced by where leaders benefit.”
He warned that continued allegations could drive service providers out of the sector.
“If landlords withdraw, institutions will face an accommodation crisis.”
Mogatosi called on universities to centralise placements through institutional accommodation offices rather than allowing SRC structures to influence decisions.
“Any student leader found demanding gratuities must face disciplinary action.”
Mvelo Abenta, EFF Youth Command provincial convenor and WSU SRC president, said he was aware of the allegations but cautioned that some claims surfaced during compliance inspections.
“These allegations are not foreign. If extortion is happening, we do not condone it.”
Abenta said the timing of some complaints raised questions.
“Every time we conduct compliance inspections and remove students from facilities that do not meet standards, allegations resurface.”
He cited a recent inspection resulting in students being removed from a residence that had reportedly been without electricity since early February.
“When we removed students, the owner claimed he had been extorted. The question is why he remained silent for so long.”
Abenta said inspections were conducted to ensure students lived in safe and compliant conditions.
Sasco Eastern Cape provincial chair Tsepo Buthelezi could not be reached for comment.
Landlords insisted the practice was widespread but under-reported due to fear of retaliation.
“We operate in a space where access to students determines survival,” one said.
“If you are cut off from placements, your business collapses.”
Daily Dispatch
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.