Real Estate Investor Magazine South Africa April/May 2019 | Page 17

LEGAL Landlords: if you do not comply with the Act you could face a fine or up to two years in prison, and although imprisonment is unlikely, it is a possibility. While this threat of criminal liability for non- compliance has sparked concern, the legal certainty the Amendment Act provides should improve landlord/ tenant relationships. The clarity and security of well- defined lease agreements could also stimulate foreign investment with its concomitant spin-offs. So, make sure you understand the Amendment Act as well as your rights and responsibilities. As long as you comply with the legislation, there is no reason to worry. The Amendment Act in a nutshell • • • The new legislation requires landlords to provide tenants with a written lease agreement. Verbal agreements will no longer be binding. ‘Get it in writing’ has always been sage advice. It still is. Tenants are entitled to privacy and, while landlords can inspect the property from time to time, unannounced ‘spot’ inspections are not permissible. Sufficient advance notice is required. What about existing lease agreements? When it is finally gazetted, the Rental Housing Amendment Act will apply immediately to new lease agreements and landlords will have six months to bring existing agreements in line with the new legislation. What is not clear is how non-compliance will be enforced and whether, for example, a verbal agreement becomes null and void. And if so, from what point in time? The bottom line The Rental Housing Amendment Act 35 of 2014 attempts to remedy shortcomings of the Rental Housing Act 50 of 1999, improve landlord/tenant relationships and Properties must be provide better protection ‘habitable’. This is defined for tenants. as a dwelling that is Historically some structurally sound and The Amendment Act increases landlords have exploited suitable for living in, the rights of tenants and desperate tenants has adequate space, and obligations of landlords and by renting out sub- provides protection from standard properties. The the elements and access firms up the rules regarding Amendment Act spells to basic services such as inspections, deposits, the out standards for rental water and electricity. condition of a property and what housing – a significant step towards improving Property owners are also should be included in the lease. the quality of housing entitled to ensure that accessible to the most their property is treated vulnerable in our society. with respect and the Although the landlord’s obligations are more Act protects landlords from tenants who cause onerous under the Amendment Act, the legislation malicious damage to a rental property. protects the landlord’s property interests as well The landlord must place the tenant’s deposit and going forward tenants will have to comply with in an interest-bearing account and repay the certain revised terms and conditions in their lease deposit plus interest within seven days of the agreements. This will weed out the ‘good’ tenants from the ‘bad’. lease expiring. “ “ • • • The onus is on the landlord to inspect the property with the tenant at the start of the lease. Any defects or damage not rectified by the landlord must be listed and attached to the lease agreement. If a joint inspection does not take place, the property is assumed to be in good condition and the landlord may not later withhold the deposit for repairs or damages. Get compliant now • The landlord cannot cut off utilities and services due to non-payment. Only the municipality has the right to do so. • A landlord cannot lock a tenant out of the property without a court order. This rule gives the tenant security of tenure and makes sure that the landlord follows procedure if there is a grievance. Don’t wait until the last minute to comply with the Rental Housing Amendment Act. Simon Dippenaar & Associates are property law experts and act for both landlords and tenants. Call us on 087 550 2740 or email [email protected] if you need help drafting a lease agreement or for any property- related matters. The Amendment Act makes it a criminal offence to not have a written lease agreement. So, if you don’t have a written agreement in place, now is the time to draft one. Six months sounds long but as you know, time flies. And for the tenants out there, make sure you are au fait with your rights and obligations too. Contact us SA Real Estate Investor Magazine APRIL/MAY 2019 15