This is generally the time of year when many new job entrants and professionals start thinking about getting their own rental place. It is a big financial step and aside from once you have passed the credit approval process and signed a lease agreement, there are a number of things to be aware of. Seeff Blouberg provides some guidance.
When is the deposit and lease costs due? You should ensure that you have adequate cash available upfront because the deposit amount and lease costs as well as the first month’s rent must be paid before taking occupation. The deposit varies, but is usually between one and two months’ rent. The costs would relate to the vetting and credit checks undertaken for the tenant as well as the admin fee payable for the drawing up of the contracts.
When will the rental be due? Rental is due on or before the 1st of the month and you need to ensure this is done. If it falls on a weekend or public holiday, it must be paid prior to ensuring it is in the account by the 1st. If not, you would be in breach and a letter of demand could be issued and you could potentially also have your name listed on the credit bureau as a late payer which will affect any future credit you wish to apply for.
What other costs would the tenant be responsible for? This is really dependent on the lease agreement and what has been allocated to either party to pay. In general, the tenant will be liable for their usage of electricity as well as water, sanitation and refuse which they make use of during the month. This is billed in arrears and added to their monthly rental and payable by the 1st of the month along with their rental.
Cancelling your lease before it ends. In terms of the Consumer Protection Act, section 14, you need to give 20 business days’ notice. However, the landlord may charge a reasonable cancellation fee. A reasonable fee should be stipulated in the lease agreement so that all parties are clear on it. Factors such as the rental amount per month and the likelihood of finding a suitable replacement tenant, and marketing costs and commissions due will determine what this cancellation fee would be.
Can you transfer the lease to someone else? If you wish to vacate and have found someone to take over the lease, that person would need to undergo the same vetting processes and enter into a new lease. Alternatively, you would remain the main tenant with the lease remaining in place and all obligations falling on you. This could be risky, and you would need to ensure you are financially secure. It is therefore best to rather get the new tenant to sign their own lease.
Can you sub-let to friends to help pay the monthly rental? Lease agreements usually do not make provision for sub-letting. It is therefore recommended that you disclose this to the landlord or managing agent and that the other person contributing is then added to the lease agreement. The tenant may not completely vacate and sub-let to another person as this is a material breach and the tenant will be liable for damages, and the landlord can take legal action against the tenant.
What constitutes a breach of the lease agreement? There would be a material breach if either party breaches any of the terms and conditions agreed upon in the lease agreement. If the tenant fails to pay any amount due in terms of the lease agreement timeously for example, they will be issued with 20 days’ notice in accordance with the CPA to rectify the breach committed and failing which there will be grounds to cancel the lease agreement.
What to do if the landlord knocks on the door at any time? In accordance with the unfair practices regulations of the Rental housing Act the landlord must take reasonable steps to ensure that the tenant enjoys undisturbed use of the dwelling. The tenant should also be accommodating where possible. A landlord may only enter the dwelling on reasonable notice to inspect or make repairs, show the dwelling to prospective tenants or buyers, or with a court order.
What if the geyser bursts or another property emergency occurs? The landlord must ensure the property is habitable. The Rentals Act Regulations obliges the landlord to maintain electrical, plumbing, sanitary, heating and ventilation systems among others including the geyser and these repairs are the responsibility of the landlord. The tenant may not proceed with any repairs until approved by the landlord and cannot deduct anything from the rental without prior approval.
When will you get your deposit back? In terms of the Rental Housing Act, it must be refunded with interest within 7 days of expiry of the lease if no monies are owed and there are no damages or cleaning is necessary after the exit inspection is done and the keys returned. The landlord may, however, deduct outstanding moneys and the cost of repairs and must then repay the balance and interest within 14 days of restoration. The landlord must keep relevant receipts to indicate the costs incurred.
What to do if the landlord refuses to refund the deposit? The tenant may approach the Rental Tribunal in his province and lodge a complaint against the landlord. The tribunal will assess the case and if valid, set up a hearing to facilitate mediation to resolve the dispute. At the hearing all documents and reports will need to be provided and all parties are to appear before the tribunal. Once the tribunal reaches an outcome and conclusion it makes a final ruling which all parties need to adhere to.
Author: Gina Meintjes, 24 January 2023, Rentals