| Leases: Written or Verbal? |
| Although a written document is always preferable, a lease can also be a verbal agreement. The tenant and landlord must agree on
the use and enjoyment by the tenant of a certain property and upon the amount of rent. They can enter into further terms of agreement
such as who will be responsible for maintaining the property, but cannot agree to terms which conflict with law, such as giving a landlord
authority to evict the tenants without an Order of the Court. |
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| What information must be on a written lease? |
| Your name
Your landlord's name
Your postal address
Your landlord's postal address
The address of the property being leased
The amount for which you will rent it
The amount by which the rent will increase (for example, by 10 percent when renewing the lease)
When the rent will increase (for example, if there is a rates increase)
How often rent is to be paid (for example, monthly)
The amount of the deposit, if any
Your and your landlord's obligations (For example, who is responsible for maintenance? Who will pay the water, electricity and rates bills?
Usually, the tenant pays for charges related to consumption, such as water and electricity, and the landlord pays for charges related to the property, such as rates)
The conditions under which either you or your landlord can give notice to cancel the contract (for example, if specific maintenance is not done,
or if the tenant is in arrears with the rent)
The House rules, signed by both of you, should be attached to the lease.
A list of defects, drawn up at a joint inspection when you move in and signed by both of you, must also be attached to the lease.
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| How do I check a potential tenants background? |
TPN credit bureau is a specialized bureau which holds information related to tenants previous rental behaviour.
For further information, call TPN on 0861 876 000 or visit www.tpn.co.za. |
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| What are the tenant's obligations? |
| The tenant has an obligation to pay rent in the proper amount, at the proper place and time; to take care of the property and to
leave it in the same good condition it was received. (wear and tear excluded). |
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| What are the landlord's obligations? |
| The landlord must be able to make the leased property available to the tenant on the agreed date, in a condition reasonably fit
for the purpose which it is being let. The landlord can specifically contract out of maintaining the property or specify that the tenant
is responsible for paying levies or taxes as additional charges. However if the contract is silent on these matters it is the landlord's
responsibility to maintain the property and pay the taxes. |
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| What are a rental agent's obligations? |
| Rental agents are required to be registered with the Estate Agents Affairs Board. This provides protection to both the landlord
and the tenant. The duties of the rental agent differ between agencies as their duties will be negotiated with the landlord for a set fee
or commission. General duties include collecting rent, paying costs associated with the property (e.g. Levies) and paying the balance to the
landlord. If the tenant does not pay on due date, the agent must pursue all legal avenues to collect the rent: call the tenant, send letters of
demand, cancel the lease if necessary and demand that the tenant vacate the property after the rental agent has performed these steps, the land,
as the investor who accepts the risk and rewards of owning an investment property, will need to foot the bill. |
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| When the rent is due? |
| This should be detailed in the agreement of lease. Most leases state "…the monthly rent is payable in advance, on or before the first of
each month…" There is no 7 day grace period for tenants to pay their rent. |
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| For which costs are tenants / landlords responsible? |
| The lease agreement should determine this. Generally tenants are liable for usage costs, (e.g. water, electricity, gas, sewerage, and parking).
The landlord is responsible for the taxes on the property. |
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| Can a tenant withhold rent for damages? |
| No, the tenant's obligation is to pay the full rent on due date. If there are defects to the property that prevents it from being occupied for
the purposes which it was let, the tenant's remedy is to demand repairs in writing, failing which he or she should cancel the lease. |
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| Penalty fees? |
| The landlord / rental agent can charge a penalty fee for late payment of rent, provided the lease agreement makes provision for when the penalty
may be charged, and the amount of the penalty. Gauteng Rental Housing Regulations prohibit the charging of penalties in Gauteng. |
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| How much interest does the tenant's deposit earn? |
| A landlord must invest the tenant's deposit in an interest bearing account with a financial institution, where the rate if interest may not be less
than a savings account. If the deposit is held by an estate agent, 50% of the interest earned on their trust account is paid to the
Estate Agent Affairs Board. |
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| When is the deposit refunded? |
| The tenant and the landlord must jointly inspect the property when the tenant vacates. If there are no damages the deposit should be refunded within
7 days of expiry of the lease. Should the landlord need to repair damages to the property, the deposit must be refunded not later than 14 days after
restoration. |
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| Advised action plan: |
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It is advisable to have a written Agreement of Lease
If the lease Agreement has expired – redraft and re-sign
If the Lease agreement is outdated – update it
Communication: Take action immediately if either party bound by the lease breaches their obligations.
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