Real Estate Investor Magazine South Africa July 2015 | Page 38

LEGAL

Know Your Legal

Rights
Responsibility lies with both
the landlord and tenant
BY BERNADETTE MENEZES

M

ost people have either been a tenant of a
residential property, or may be letting out
a residential property – assuming the role
of landlord. There are many considerations for both
parties, yet it often becomes apparent that both the
landlord and the tenant do not always know what their
rights are.
There are statutory obligations that need to be
considered which are regulated by the Rental and
Housing Act (RHA); and implications around the
Consumer Protection Act (CPA), if you are a landlord
leasing property as an ongoing business.
As a start in terms of the RHA, there are three
prominent obligations that must always be considered
by both landlords and tenants:
• Investment of the deposit;
• An inspection of the property; and
• The presentation of all receipts.
Once a lease has been drawn up and signed, a deposit
must be paid. Its primary purpose is to protect the
landlord, should the tenant damage the property. The

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JULY 2015 SA Real Estate Investor

law requires that the deposit, paid by the tenant, must
be invested by the landlord into an interest-bearing
account and this is where some landlords get it wrong.
If a tenant had invested that money, instead of using
it as a deposit, it will have accrued interest. Realistically,
the interest accrued on a R10 000 deposit may not be
much. However, if the deposit was not invested, the
landlord may face a claim from the tenant for the
interest they would have earned on the deposit, had the
amount been invested over the same period of time.
With the lease signed and the deposit paid, the
tenant in the presence of the landlord, must then inspect
the property. They must do it together to ensure it is
suitable for immediate occupation. Extra time taken in
inspecting the property will force a landlord to ensure
the property is sufficiently suitable for occupation prior
to the tenant paying the deposit.
As a tenant, you have every right to walk around
the property and check that everything functions as it
should. For example, check that all the lights in the
unit, including outdoor lights are functioning. Switch
on the stove and oven, to ensure they both work. Turn
on the hot water tap and ensure the geyser works. Open
all windows to make certain that levers and hinges are
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