Real Estate Investor Magazine South Africa October 2013 | Page 28

MANAGING

BYJOHN ROBERTS

Fine Tune Your Lease
To suit you and your tenant
accommodation as their home and
thus take umbrage at being told
how long an extra person may stay.
A visitor spending a few nights with
their friends is unlikely to be an issue
for anyone, but when that extends to
weeks, things may turn nasty.
There are valid reasons for landlords
limiting the numbers - the more
people, the higher the wear and tear;
unauthorised tenants do not pay rent
or for repairs and unapproved residents
create legal hassles during evictions.

I

t is common knowledge that landlords can
fine-tune their leases to fit with personal
beliefs or requirements. It is not unreasonable
for the lease agreement to state the property may
not be inhabited by smokers or that pets are not
allowed or to stipulate that the maximum number
of people who stay on the pr operty cannot exceed
a specific figure.
However, leases are two-way agreements and
there is nothing stopping tenants from including
clauses in the lease that benefit their lifestyles and
requirements. Essentially a lease is more than just
a document outlining how much needs to be paid
each month and how long the tenant may live
there.
Leases are legally binding documents that
contain the do’s and don’ts and both sides
must ensure they have carefully read them and
understood their contents before entering into
that agreement. The Consumer Protection Act
has now made it law for documents to be written
in clear language, so excuses that “it is too full of
incomprehensible jargon” cannot cut the mustard.

What then are some issues tenants
and landlords should resolve before
signing on the dotted line?
The first would be the issue of guests and their
length of stay. Tenants consider their rented
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October 2013 SA Real Estate Investor

Hence, ensure the lease states the length of stay
for guests and the number of additional people
that may move into the rented accommodation.
An extension on the guests’ policy is sub-letting
while on holiday. Leases typically prohibit tenants
from sub-letting the home without the landlord’s
prior written consent in a bid to protect his
investment.
The tenant has been vetted to live in that
property; paid deposits to cover potential damages
and is legally bound to the responsibilities
associated with renting someone’s home. Subtenants are not bound to the same criteria and
may not have the same respect for someone else’s
property.
Before signing the lease, tenants should discuss
these issues with the landlord. Maybe they have
planned an extended backpacking tour through
south-east Asia and want to sub-let the property
to cover some of their expenses - but ensure this is
an agreed condition.
The next issue is that of personal touch. Tenants
want to live in their own space, but does that
include banging holes in the wall or making
alterations to accommodate the dishwasher or
washing machine? If tenants bolt something
to the wall or lay carpets because the wooden
floors are cold in winter, those items become the
landlord’s property unless the lease agreement
states otherwise.

Ensure the lease states what changes are
acceptable to facilitate individual tenant
requirements, but make returning the property
to its original state the tenant’s cost and
responsibility.
Today’s connectivity also means millions of
people globally work from home or look to start
a home-based business. However, this also needs
to be addressed before signing the lease as most
leases state the property can only be used for
residential purposes - and that expressly dismisses
working from home.
There would be flexibility depending on what
that business involves. Working alone with a
computer and telephone could hardly cause due
stress on the property, but having clients traipsing
through daily and delivery trucks arriving
throughout the day may not be something with
which the landlord is happy.
Repairs and maintenance is another issue
of which both sides need to be clear of their
responsibilities. While it is undoubtedly the
owner’s responsibility to repair the cracked and
crumbling steps leading to the front door, it is
the tenant’s responsibility to pass on information
relating to their demise in the first place.
The lease states the tenant must alert the landlord
immediately to any dangerous conditions, but
months go past and then an outsider injures
himself on those stairs. Potentially it could be
tenant who may be held responsible for third party
damages, because no notice had been passed on to
the owner.
However, equally as important is for landlords
not to lose sight of the reality that this remains their
property and investment. That means, whether
you are self-managing one rental property or 10,
landlord insurance should be a paramount concern
to ensure you are covered if tenants default on their
rentals - despite your best efforts to transform the
property into their haven.

RESOURCES
Just Property Group

www.reimag.co.za