Real Estate Investor Magazine July/ Aug 2020 July 2020 | Page 26

LEGAL
Lease agreements
post Covid-19
Important terms to protect
landlords & tenants
In the aftermath of the Covid-19 lockdown in South Africa,
many tenants are facing financial hardship and having to
move quickly because they can no longer afford the rent on
their property. To avoid unpleasant legal surprises for both
tenants and landlords, ensure you have a written lease with
these terms.
“Meanwhile, many cash-strapped home-owners are
trying to let out any spare space they have to make ends
meet,” says Gerhard Kotzé, MD of the RealNet estate
agency group, “but whether you’re a tenant or a landlord
in this situation, you should always make sure your rental
agreement is in writing.
“This is not only a requirement of the Rental Housing Act,
but the best way to avoid confusion or any future disputes
about the terms of your rental agreement – especially if this
was concluded in haste.”
He says landlords should also always run credit and
reference checks on any prospective tenants – with their
written permission, of course – before allowing them to take
occupation of any part of their property. “Even if you really
need the extra income, it is much better to turn someone
with a poor credit profile or a poor payment record down
at the start than to have to go through the time-consuming
and costly process of evicting someone who has defaulted
on your rent.
“And to make things even easier, rather rent or let your
home through a qualified and experienced managing agent
affiliated to a reputable agency, who will be able to provide
a standard written lease that clearly sets out all the terms
and conditions of your agreement, and all the rights and
responsibilities of each party.”
22 JULY/AUGUST 2020 SA Real Estate Investor Magazine