Real Estate Investor Magazine South Africa June/ July 2019 | Page 24

RESIDENTIAL
How the new Rental Amendment act
affects both landlords and tenants
Both parties are advised to comply to the new regulations and requirements
BY GLENDA TAYLOR
A
lthough the highly anticipated Rental Housing Amend-
ment Act (RHAA) is currently still in the works and yet
to be added to the Government Gazette, landlords and
tenants are encouraged to be aware of the new requirements.
which the tenant is liable under the lease agreement, including
outstanding accounts for water/electricity and the reasonable
cost of any repairs caused by the tenant to the premises.
Rental properties to undergo joint
The Rental Housing Amendment Act 35 of 2014 increases
inspection at both the start and end of the
the rights of tenants and obligations of landlords. It will also
help eliminate potential grey areas that
lease
could create disputes. The Act aims to firm
The Act also protects landlords from
up the rules regarding inspections, deposits, “This Act should improve landlord/ tenants who cause malicious damage
the condition of a property and what
tenant relationships and provides to a rental property. The onus is on the
should be included in the lease.
landlord to inspect the property with
further protection than what is the tenant, at the start of the lease. Any
Principal of Greeff Rentals, Glenda
already contained in the Rental defects or damages must be noted but
Taylor says that both landlords and tenants
not necessarily rectified by the landlord
Housing Act, as well as the
must familiarise themselves with the new
and must be listed and attached to the
Consumer
Protection
Act.
While
amendments made.
lease agreement for later comparison.
the long-anticipated Amendment On exit, if a joint inspection does not
“This Act should improve landlord/
Act is yet to be gazetted, both
take place, the property is assumed to
tenant relationships and provides further
be in good condition and the landlord
landlords and tenants will be
protection than what is already contained
may not withhold the deposit for
required to comply with the
in the Rental Housing Act, as well as the
repairs or damages.
provisions of the Act immediately,
Consumer Protection Act. While the long-
anticipated Amendment Act is yet to be for all new lease agreements, while
Legal procedures must be
gazetted, both landlords and tenants will
existing lease agreements are to
adhered to
be required to comply with the provisions
be updated within six months of The landlord cannot cut off utilities
of the Act immediately, for all new lease
the Act coming into effect. This and services due to non-payment (this
agreements, while existing lease agreements
are to be updated within six months of the Amendment Act basically stipulates can only be done by the municipality)
lock a tenant out of the property
Act coming into effect. This Amendment
a set of guidelines regarding the or
without a court order. A landlord
Act basically stipulates a set of guidelines
relationship between the landlord is required to follow correct legal
regarding the relationship between the
procedures even if the tenant is in
and tenant,” she said.
landlord and tenant,” she said.
breach. Tenants are entitled to privacy
and landlords can inspect the property
New requirements
from time to time. Prior appointments must, however, be
The new legislation requires that the landlords must provide
made with the tenants and unannounced inspections are not
a written lease agreement as verbal agreements will no longer
permissible.
be binding. The landlord must ensure that the property is
structurally sound, suitable for habitation, has adequate space,
Although the landlord’s obligations are more onerous under
and provides basic services such as water and electricity. All
the Amendment Act, the legislation protects the landlord’s
these items should be addressed in the lease agreement.
property interests as well, and going forward, tenants will have
“
“
Deposits to be placed in interest-bearing
accounts
It also addresses the fact that the landlord must place the
tenant’s deposit in an interest-bearing account- the interest
accruing for the benefit of the tenant. The deposit interest
accrued should be refunded as soon as possible (usually seven
days), after termination of the lease agreement. The deposit may
be applied towards the payment of any outstanding amounts for
22
JUNE/JULY 2019 SA Real Estate Investor Magazine
to comply with revised terms and conditions contained in their
lease agreements.
It is crucial for both parties to understand the Act, as well as
their rights and responsibilities, and if both parties abide by the
agreement, there is absolutely no cause for concern.
RESOURCES
Principal of Greeff Rentals