The property business can be quite tricky, especially if you dive in without familiarising yourself with the law. Since housing is a sensitive topic, and you’re dealing with human beings to have the right to adequate housing, the property business is not one to be unprepared about.
If you’re a property entrepreneur or intend to be one, there are several factors you must be aware of. From rental agreements, disputes with tenants, tenant and landlord rights and obligations, and much more.
This article serves as a starting point to ensure you’re legally equipped for your rental business in accordance with the Rental Housing Act.
What to Include in Your Rental Agreement
The Rental Housing Act 50 of 1999 states that written leases are not mandatory. While written leases aren’t always mandatory, landlords must provide a written lease if a tenant requests it. Leases may include certain enforceable terms. This includes the following:
1. Issue Written Receipts
Landlords must issue written receipts for all payments, dated and detailing the payment’s purpose and period. They can require a deposit, which must not exceed the equal amount of the stipulated rental amount.
2. Inspect Property
Before moving in, landlords and tenants must jointly inspect the property for defects. A similar inspection should occur within three days before the lease ends to check for new damage.
3. Use of Deposit
Upon lease expiration, landlords can use the deposit for unpaid amounts, repairs, or lost keys, refunding the balance within 14 days of restoration. If no amounts are due, the full deposit and interest must be refunded within seven days.
4. Deposit Refund
Failure by the landlord to conduct a joint inspection means they acknowledge the property is in good repair and must refund the full deposit plus interest. If the tenant fails to respond to an inspection request, the landlord inspects alone within seven days of lease expiration and can deduct costs for damages or lost keys. The balance must be refunded within 21 days. Receipts for deductions must be available to the tenant.
These are standard provisions that cannot be waived. If a tenant remains after the lease expires with consent, a periodic lease is assumed, requiring one month’s written notice for termination.
Written leases must include names, addresses, dwelling description, rent, payment frequency, deposit amount, lease period, tenant/landlord obligations, and other charges. A defect list and house rules must be attached. Landlords must ensure compliance with these requirements.
How to Handle Disputes With Tenants?
Property entrepreneurs can refer to the Rental Housing Tribunal to solve disputes. The Rental Housing Tribunal serves as a conflict resolver between landowners and tenants. The tribunal has been appointed by the MEC and serves as an independent body.
- The tribunal has the authority to do the following:
- Determine jurisdiction and summon individuals to hearings.
- Conduct hearings in person or virtually.
- Issue binding orders to ensure compliance with the Act.
- Enforce its rulings with the same legal authority as a Magistrate’s Court judgment.
- Impose fines, make judgments, determine fair rentals, and issue spoliation orders.
What Rights Does the Tenant Have?
If you have or want to build a property rental business, it is crucial that you are well-informed on the rights that tenants have. Your tenants are protected in the following ways:
- Landlords cannot discriminate against tenants.
- Tenants have a right to privacy.
- A tenant’s person or home cannot be searched.
- A tenant’s property cannot be searched.
- A tenant’s possessions cannot be seized unless permitted by law and with a court order.
- The privacy of a tenant’s communications cannot be infringed.
- The rights regarding searches, seizures, and communication privacy apply equally to members of the tenant’s household and bona fide visitors.
What Rights Does the Landlord Have?
Landlords are also protected in the Rental Housing Act. The rights that you have as a landlord are as follows:
- Landlords have the right to prompt and regular payment of rent and any other agreed-upon charges.
- Landlords can recover unpaid rental or other due amounts. This will require a ruling from the Tribunal or a court order.
- Landlords can terminate a lease on grounds that are not unfair practices and are specified in the lease agreement.
- On lease termination, landlords have the right to receive the property in good repair, excluding fair wear and tear.
- Landlords can repossess rental property only after obtaining a court order.
- Landlords can claim compensation for damages to the property or improvements caused by the tenant, a household member, or a visitor.
