Category Archives: Property letting

Information, articles and news that is relevant to property letting in South Africa.

Prepaid water meters unconstitutional.

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Residents of the Gauteng township Soweto, have taken the matter of the constitutionality of  prepaid waters meters to the Supreme Court of Appeals today.

This is after they already won their case against Johannesburg Water and a High Court Judge ruled that not only were the meters unconstitutional but the residents were to receive 50 litres of free water per person per day. This was in 2008, yet Johannesburg Water continued to install the meters even after the court ruling.

The residents also state that prepaid water meters installed in properties in wealthier areas work on a different principal because the wealthier residents are given an opportunity to make representations and are allowed adequate notice of disconnection.

The basis of the residents’ argument is that water is a basic human right and the restriction thereof is unconstitutional. The residents not only want the meters removed but they are also campaigning for more free daily water.

The matter will probably end up being heard in the Constitutional Court if Johannesburg Water continues to fail to comply with the High Courts ruling. This will probably set precedent and will demonstrate whether or not the South African constitution is followed when it comes to the most basic matters that are important to everyday life.

What do you think? Should free water be made available to the poorer communities in South Africa?

street address

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The physical location where a person or organization can be found. A street address will include the property’s street number, street name and suburb.                                                                                                                                                                              For example:   10 Example street, Faerie Glen

Landlord's frequently asked questions.(part 4)

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This is the fourth and final instalment of  “Landlord’s frequently asked questions” . We try and answer these questions to the best of our abilities but in the event of any dispute between yourself and your tenant contact your local Rental Housing Tribunal. They will be able to instruct you on the legal route to follow when dealing with your tenants.

10.What can I as the landlord do if the neighbours complain about my tenant?

All tenants must comply to the house rules of the complex or area they stay in, if they are in violation of these house rules you should be able to implement the cancellation clause in your contract and give your tenant notice. As always it is best to keep a record of your correspondence with the tenant regarding complaints against them and the actions you intend to take.

11.What can I do if I suspect my tenant is doing something illegal on my property?

Immediately report your suspicions to the police,  you can also include a clause in your lease agreement allowing you to cancel the lease immediately if the tenant is found to be committing an illegal act on the premises.

12. Can I use my tenants deposit to repair damage they have done to the property?

Excluding reasonable wear and tear, you may use your tenants deposit to repair damage that they have done to the property. You need to be able to provide the tenant with receipts that reflect the cost of the repairs and you have to return any leftover monies to the tenant. Always inspect the property together with the tenant when they move in and out, you can then compare the two lists and see if they have damaged the property.

As I said above if you encounter any problems with your tenant contact the Rental Housing Tribunal in your province. You can also refer to the Rental Housing Act of 1999, this is easily found and downloaded from the Internet.

Landlord's frequently asked questions.(part 3)

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This is the third instalment of  “Landlord’s frequently asked questions” , you can find the previous instalments in the sites article archives. We try and answer the questions to the best of our abilities but it is always a good idea to seek out professional legal advice, for example by calling the Rental Housing Tribunal in your province. They offer advice regarding landlord/tenant relations.

7.If my tenant’s lease expired a few months ago and they are still paying for and living in the property may I give them notice to vacate the property immediately?

NO, the first thing you should do is check your lease agreement for a clause specifically for this event and follow what it says. If there is no such clause then you and your tenant have effectively renewed the original lease and all it’s terms including it’s length and period of notice clause. If you still wish to evict the tenant before the end of his newly renewed lease you need to follow the terms set out in the cancellation clause of your lease agreement, if you have such a clause.

8.Can I evict my tenant myself, if not, how do I do it?

Unfortunately no matter how tempting it is you may NEVER evict a tenant yourself. Check what your contract says and if the tenant is in breach follow the legal route and call your local Rental Housing Tribunal. They should be able to advise you on how to obtain a court order to evict the tenant.

9. May I change the locks on the property and lock my tenant out?

NO, this is illegal. It is considered an illegal eviction and you as the landlord could get in serious legal trouble for doing it. If you need to change the locks on the property you must give the tenant a spare key so that they may also access the property.

Let us know how you successfully evicted a problem tenant the legal way.

Landlords’ frequently asked questions.(part 2)

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Following up on yesterdays article  “Landlords’ frequently asked questions.(part 1)”   here are a few more popular questions landlords ask.

4. If I want to increase the rent may I do so at any time?

The short answer is NO.You have signed a contract that guarantees the amount of rent a tenant must pay for the full term of the lease. However you may include a clause in the contract that states that you can increase their rent if certain specific things take place, like if the rates go up.

5. May I increase the rent as much as I want to?

Again the answer is NO.You need to state in your lease agreement with the tenant how much you are going to increase the rent upon renewal of the lease.This needs to be a reasonable amount, usually only 10%.If you do not have this clause then you need to negotiate an increase that you and the tenant find acceptable.

6.My tenant says he has paid the rent, but i haven’t received anything yet.

It is of course the tenants responsibility to ensure that you are paid, therefore they must be able to provide some proof of payment. If they cannot you are entitled to give your tenant notice and have them legally evicted. Likewise if you know you have been paid you must be able to provide your tenant with a receipt.

Tell us how keeping records of any payments received/made has helped you in the past.

What will make you a bad landlord?

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Many landlord’s find themselves in sticky situations when it comes to dealing with tenants. Often a tenant can take advantage of a landlord by not complying with their obligations as stated in the lease agreement or by deliberate damage to the rental property.

Many landlords will then consider underhanded tactics to rid themselves of the tenant or to force them to comply, many of these tactics leave landlords open to legal action against themselves.

Some of the things that landlords are not permitted to do are switching off the electricity supply to the rental property and having the property’s water turned off. Some landlords will even go so far as to remove the doors of the property or remove the tenants belongings without their permission.

A landlord may take possession of items the tenant brought onto the property but only after following the legal route with the sheriff’s office. If a landlord merely enters a tenants home and removes their furniture and other belongings this is considered theft and the landlord will be open to criminal prosecution.

While it is very tempting to deal with a bad tenant in this manner it will only be to your detriment and make you look like a bad landlord. Contact your local Rental Housing Tribunal, there should be one in every province, and have them advise you on how to proceed in the legal manner.

Another way to be a bad landlord is to neglect your property. If  you do not maintain the property you rent out to a good standard your investment will surely suffer. This really is like shooting yourself in the foot because you probably bought the property as an investment.

So always follow the legal route when dealing with a bad tenant and take care of your investment.

Landlords' frequently asked questions.(part 1)

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In a series of articles we will be answering a couple of the most frequently asked questions to the best of our ability, when in doubt always get advice from a qualified professional.

1.Do I have to sign a lease agreement with my tenant?

This is always best as a written agreement should state all the terms agreed upon by the landlord and the tenant so it will be easier to settle any disputes in the future. However a verbal agreement is just as binding, but you as a landlord have to be able to supply a written contract if the tenant requests one.

2.What information should the lease require?

Both the landlord and the tenant’s name.

Both the landlord and the tenant’s postal address.

The address of the property the tenant has agreed to lease.

The obligations of each party, usually the tenant pays for the water and lights and the landlord pays the rates.

The amount of rent the tenant will be paying and by how much the rent will increase upon renewal of the lease agreement.

In what kind of instalments will the rent be paid eg; monthly.

Any other reasons why the rent would increase, for instance a rates increase.

The amount of deposit the tenant has paid.

The terms by which either party must give notice to vacate the property or cancel the lease.

A list of defects the property may have and the rules which the tenant has to abide by regarding pets; etc.

3.May I ask for a deposit?

Asking for a deposit is well within your rights and is to be returned to the tenant upon expiry of the lease, if the tenant has damaged the property beyond reasonable wear and tear the deposit is to be used to cover the cost of repairs.Remember the deposit must be put into an interest bearing account and that you as the landlord must be able to provide receipts for any repairs done that were paid for with the deposit.

Tell us how having a signed lease agreement and deposit has helped you in the past.

Does a tenant receive his deposit back including the accrued interest?

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I have been trying to figure out the answer to this question for a couple of days now. Does a tenant receive, upon expiration of their lease, the deposit they paid including the interest accrued.

The Rental Housing act of 1999 clearly states that you as a landlord must invest the deposit in an interest bearing account and the tenant is entitled to that interest upon the expiration of their lease. The tenant is also allowed to request written proof from the landlord of the interest being accrued upon request at any time during the term of the lease.

However if you are a tenant renting from a registered estate agent it would appear you are not entitled to the interest accrued, unless otherwise stated in your lease agreement. Regulations regarding this are contained in the Estate Agency Affairs Act, 1976. But this conclusion is apparently also open to interpretation and others maintain that it does allow for the tenant to receive the interest accrued just as they would from a normal landlord.

The deposit and any interest accrued are of course still there to be used by the landlord to be used to repair any damage that the tenant is responsible for. Any monies remaining of the deposit must be paid to the tenant not later than 14 days after returning the premises to the landlord.

If the tenant is not responsible for any damage the landlord must then pay back the full deposit and interest within 7 days of the expiration of the lease.

The Rental Housing Act of 1999 is easily accessible online in pdf form and was the source of my information. Remember to get any legal advice from qualified people.

*Any readers out there who wish to comment on the apparent confusion regarding estate agents and the interest accrued on a deposit please feel free to offer your insights.

Hidden health hazards in your home.(Part 1)

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We all want the cleanest healthiest home possible, but there can be many potential dangers in our homes that are hidden from us.

Most people will know how dangerous asbetos can be.It was mainly used for a variety of building applications before it’s dangers were uncovered some decades back and is therefore usually only in older homes.Products containing asbestos, when in excellent condition, usually pose very little threat, it is when they begin to get old and degrade that they release their potentially deadly fibres into the home environment.Asbestos fibres are inhaled and get lodged deep in the lung tissue where they eventually lead to scarring of the lung and a myriad of diseases.These include lung cancer, asbestosis and mesothelioma.These diseases may only present themselves 10 to 40 years after exposure to asbestos.It is for this reason that you should be perfectly aware of what your home is built from and if it contains asbestos that it is in good condition, disturbed as little as possible and checked by a professional if you suspect any problems.

Most people view mould as an annoying problem that makes your bathroom look yucky, however it can have more serious implications for some.Asthmatics are particularly sensitive to certain kinds of moulds but the mycotoxins that are released by some moulds can effect anybody.Different mycotoxins are released by different moulds and some can be harmful.Symptoms of inhalation of mycotoxins can include fatigue, flu-like symptoms, birth defects, skin rashes, cancer and lung inflammation. All very serious. So maybe it is time for you to have that mouldy linen cupboard inspected, and the rest of your home too.

Then there is everyone’s favourite, the cockroach.While we all know they are super gross and scurry into your dustbin and then over all your food spreading bacteria there is another threat you may be unaware of.Cockroaches have what is known as a cockroach antigen, this is protein found in the discarded body parts and droppings of the roach.This antigen can be extremely harmful to asthmatics and children who are sensitive to allergens.Think about how many things are possibly in your home’s air, cockroach antigens, tobacco smoke, dust-mites and their droppings and pets with fur. All of these could cause respiratory problems and should if necessary be eliminated from the home. Hopefully your child is not allergic to your favourite pet.

There are more hidden health hazards in your home and I will write a follow up article within the next week.

Try a different kind of tenant.

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Some investors are having no difficulty whatsoever in finding tenants for their rental properties, but some are losing tenants occasionally due to the credit crunch or simply not finding tenants willing to pay the rent they require.

Property investors in that situation should perhaps consider renting out their property in different ways.There is the option to specifically target businesses or business men who need self-catering accommodation when they travel.This method will have stresses unique to it and you will have to be very hands on.There will be a high turnover of people in your rental and you need to clean up, check them out ;etc, each time someone new arrives.You do however have the possibility of making a bit more money as daily rates are usually quite a bit higher than monthly rates.Keep in mind though you will probably need to advertise your property on a regular basis and build up an emergency fund for the months that are slow.

Another option open to certain investors, depending on the location of their property, is to rent out to students.It would be best if the property were then close to a university or other higher learning institution.Again you are likely to have a higher than normal tenant turnover but you also stand to make a little more money out of it.There are usually two or more students sharing a property and this usually allows them to pay more than a single tenant.In alot of cases their parents will be paying their bills and this is probably slightly more reliable than having the students themselves pay the bills as they can usually only manage part-time jobs on top of their studies.

Most people who rent out to students have one complaint in common though, they receive frequent noise complaints about those properties.Many will remember their students days as being rowdy and partying quite alot, so you know what I am talking about. Another common complaint is alcohol abuse and students letting the property get dirty.This will not always be the case though and if you feel you are up for what might become a challenge then go for it.

So consider alternative forms of letting your property but consult people with some experience in the matter.Find out about all the positive and negative aspects of what you choose to follow.Maybe you get lucky and have a neat,non-drinker for a a student tenant.