The legal ins and outs of leasing a property

POLOKWANE – Continuous confusion with lease agreements between tenants and estate agents and/or owners or landlords resulting in conflict and even expensive legal battles remains a thorny problem for many residents.

RE/MAX principal, Wilsie Oosthuizen, provides clarity on this matter;

– It is important that tenants read their contracts and ask questions for clarity – the most common mistake tenants make is not to read the lease agreement

– Before signing anything with an estate agent also make sure the company is registered with the Estate Agency Affairs Board (EAAB) on their website at www.eaab.org.za. – type in the company’s name and it will show whether the company is valid or not

– The general agreement in a lease contract entails that the tenant is responsible for the connection of water and electricity by the municipality, to ensure rent is paid on time, not to damage property and to keep the municipal account up to date

– Estate agents conduct an inspection of the property before tenants move in – but it is important that the tenant also does his or her own inspection.

Within seven days the tenant must submit his inspection list to the agent and keep a copy for future reference.

– If tenants break/damage something it is their responsibility to repair the broken item –  the owner’s responsibility is wear and tear items

– When tenants repair something that is the owner’s responsibility, without the owner’s permission, they will have to carry the cost themselves

– The owner must approve something before it is done, because it is the owner’s money which will be spent – the exception is an emergency like a geyser burst, because that is covered by insurance

– By law, a tenant’s deposit must be refunded within seven days after the lease agreement ends

– A deposit is a damage deposit. This money is used to repair damages by the tenant.

The tenant has a choice to repair the damage themselves or the agent can use some of the deposit and pay out what is left to the tenant. By law, if there is a dispute, the deposit must be finalised within 21 days.

– If a lease agreement is prematurely ended by the tenant, at least two months’ notice must be given

– If an owner wants to end a lease agreement earlier than agreed, the tenant must get three months’ warning

“This is not a law, but fair in regard to the owner finding new tenants if the tenants end the agreement or for the tenants to get a new place if the owner decides to end the agreement. However, if the owner sells the property while in a lease agreement, by law the tenants cannot be evicted until their contract ends. It is important for tenants to note that even though the lease contract ends, they must still give two months’ notice of not renewing their agreement. Should they wish to stay they must also give two months’ notice, to ensure their place as the owner can find new tenants if they don’t. The reason is the possibility of a change in the rent.”

– An agent or owner can immediately end a contract with tenants when they fail to pay rent, damage property, break the law, break Body Corporate laws and for subletting

If facing a lease dispute, Oosthuizen advised tenants not to go the expensive legal route but to report the matter to the Housing Tribunal, who will resolve the matter free of charge.Tenants can contact the Housing Tribunal at (015) 284 5000.