First-time landlords level up: Important need-to-knows

The South African rental market is growing rapidly, with approximately a quarter of households now renting as urban tenant volumes continue to rise. To meet the rising demand, buy-to-let investments have increased, including those from first-time landlords who may not always be aware of the regulations governing rentals.

According to the Seeff Property Group, it is important to know that all residential rentals, from houses, apartments, garden cottages, backyard dwellings to hostel rooms are strictly regulated by the Rental Housing Act (RHA). This includes first-time landlords.

The RHA governs the relationship between landlords and tenants, and renting out residential property comes with strict legal obligations and responsibilities whether you are an experienced investor or a first-time landlord.

Neglecting these poses risks for landlords. Even routine tasks such as billing require strict adherence, according to rental agents from Seeff. Some landlords are incorrectly under the impression that if the tenant pays directly into their bank or bond account, there is no need to produce monthly invoices.

All landlords must produce a monthly invoice for tenants showing the rent due, along with invoices and receipts for other monthly or incidental expenses, even if they are private individuals renting out a single property.

The law applies to both written and verbal lease agreements, landlords are obligated to provide a written lease agreement. This is also vital to protect the landlord’s interests, according to Seeff.

Landlords must ensure the property is completely fit for purpose at the start of the lease and maintain its structure, plumbing, electrical systems, and fixtures throughout the tenancy.

Landlords must conduct joint incoming and outgoing inspections, accompanied by a detailed condition report. These are vital documents to ensure there are no misunderstandings as to the condition upon occupation and vacating.

The tenant’s deposit must be correctly placed in an interest-bearing account. This money may not be used for any maintenance, and any deductions can only be made at the end of the lease, and must be lawful and backed by receipts.

Any maintenance or repairs required from the landlord must be resolved within a reasonable timeframe. Failing to do so constitutes an unfair practice, which carries severe legal penalties under the Rental Housing Act.

As noted, the landlord must produce a monthly rental billing invoice as well as statements and receipts, regardless of how the tenant pays. Failing to provide these documents violates the law.

Landlords must respect the tenant’s rights to privacy and undisturbed enjoyment of the property. Unlawful actions such as cutting off utilities, locking a tenant out, or performing illegal evictions carry severe penalties, including fines or imprisonment.

If disputes over breaches or unfair deductions from the tenant’s deposit arise, both parties have free access to the Rental Housing Tribunal to settle matters without expensive court fees.

Samuel Seeff, chairperson of the Seeff Property Group says utilising a specialist rental agency can minimise the financial and legal risks by ensuring compliance with the RHA, and correctly managing the day-to-day operations of the tenancy.

By handling tenant screening, legal documentation, and maintenance, rental specialists protect your investment, enabling landlords to leverage maximum financial benefits from their property investments.

Issued by Gina Meintjes