PROPERTY MANAGEMENT
The Pitfalls of Free Lease Templates
Tenant Screening: A Critical Step
PROPERTY MANAGEMENT
The Pitfalls of Free Lease Templates
In an attempt to save money, many landlords opt for free lease agreement templates available online. While these templates may be legally binding, Smee cautions that they often fail to meet South African legal requirements.
“ Free templates are typically generic and may not cover specific scenarios or comply with South African legislation, such as the Consumer Protection Act( CPA) and the Prevention of Illegal Eviction from and Unlawful Occupation of Property Act( PIE),” he says.
While free templates may provide a basic framework, they often lack the detail necessary to protect the landlord’ s interests fully. To ensure full legal protection, Smee recommends having the lease agreement professionally drafted by a property attorney or estate agent, as this offers more certainty and is likely to withstand legal scrutiny.
Tenant Screening: A Critical Step
A robust lease agreement is only one part of the equation; tenant screening is just as vital in protecting a landlord’ s property investment.“ Even when renewing a lease, don’ t assume the tenant’ s circumstances remain the same,” says Smee. Reassessing the tenant’ s financial standing and past behaviour can help prevent future issues.
Key tenant screening steps include:
Credit Checks: Assess the tenant’ s current financial standing and ability to pay rent.
Employment Verification: Confirm that the tenant has a steady income source.
Rental History Checks: Review the tenant’ s previous rental behaviour to gauge reliability.
Effective tenant screening can save landlords from potential headaches down the road, ensuring a smoother leasing experience for both parties.
82 REI MAGAZINE APRIL 2025