Real Estate Investor Magazine South Africa September/ October 2019 | Page 43

RENTAL LEGALITIES GUIDELINE
Legislature ensures that there is a foundation for processes
to ensure that each sector is regulated in accordance with all
parties involved and is further based on the national laws to
prevent crime. Seeff Properties has provided a guideline to
the legislature applicable with regards to rental agreements
between both landlords and tenants.
Rental laws
Two key forms of legislature govern rentals in South Africa, the
Rental Housing Act, 50 of 1999 and the Amended Housing
Act 35 of 2014. Both regulate the behaviour of tenants and
landlords, the property and management of deposits. Under
the basic rental laws, the Rental Housing Tribunal of South
Africa has been established to help mediate and resolve
disputes between tenants and landlords.
Sectional title property
These types of properties are regulated by the Sectional
Title Management Act, 8 of 2011 (STMA) and include rentals.
Under this act, it is required to keep the body corporate up-
to-date with new tenants and those leaving. The tenant must
be provided a copy of the rules of conduct and is required to
adhere to the rules of the complex. Under this act, tenants are
able to communicate their grievances about the building or
owner of the unit to the Sectional Title Ombud.
Evictions
The concept of eviction can be precarious for both landlords
and tenants, both parties are advised to adhere to the
regulations regarding eviction set out in the Prevention of
Illegal Eviction from and Unlawful Occupation of Land Act, 19
of 1998 (PIE Act).
Lease Agreements
The contents of lease agreements are guided by both the
Law of Contract and Common Law, this includes the process
in which contracts are signed and witnessed. With the current
innovations of technology, the Electronic Communications
and Transactions ACR, 25 of 2002 regulates the concept of
electronic contracts being signed and sent back via potential
tenant and landlord.
Rental deposits and cancellation
Entering rental agreements
Multiple laws that govern who and ow rental contracts
must be signed:
Immigration Act, 13 of 2002: In order for
foreigners to lease a property, they must
obtain a valid visa from the Department of
Home Affairs.
Matrimonial Property Act 88 of 1984: This act
regulates property contracts in the cases of
marriages out of community of property and
foreign marriages.
Trust Property Control Act, 57 of 1988: Trusts
fall under this act and allows for trustees who
have entered the contract to be a party to any
considered dispute.
Companies Act, 61 of 1973: This allows
individuals the capacity to transact on behalf
of a company.
regulates the relationship between neighbours. These by-laws
also indicate how the property should be used and what is
acceptable or not.
Personal information
POPI, or better known as the Protection of the Personal
Information Act, 112 of 1976 is currently on the cards to be
implemented and will provide the protection of personal
information of tenants. This indicates that all personal
information should not be shared for gain.
“The new legislation elaborates
on this relationship and aims
to clarify certain aspects of
the older Act that have given
rise to many differences of
interpretation,”
The Consumer Protection Act, 6 of 2009 (CPA) provides tenants
with the right to terminate a contract for no reason which is
subject to previously agreed penalties (indicated in the signed
lease agreement). Rental of a property is seen as a fixed-term
agreement. Estate Agents
Financial RENTAL HOUSING AMENDMENT ACT
Penalties are dealt with under the Conventional Penalties
Act, 15 of 1962. A lease can stipulate potential penalties if
the tenant incurs late payments or arrear in rentals, tenants
are liable to this if it is agreed on in writing by both parties. If
money is outstanding between the landlord and tenant or vice
versa, the Debt Collectors Act, 114 of 1998 regulates money
owed. If VAT is applicable within the rental agreement, it will be
regulated by the Value-added Tax Act, 89 of 1991.
Municipal by-laws
The use of property is regulated by Municipal By-Laws and
According to the Estate Agency Affairs Act, 112 of 1976 rental
agents must have a Fidelity Fund Certificate. The act regulates
the manner in which deposits on properties are handled by an
estate agent.
Proposed changes to the current rental amendment set out
the statutory rights and obligations of the tenant and landlord.
It also regulates the relationship between both parties involved
in the agreement, inclusive of the tenants and landlords.
National Rentals Manager for the Chas Everitt International
Property Group, Tobie Fourie explains the aims of the new
amendments to the act and its impacts on the relationships
between landlords and tenants. “The new legislation elaborates
on this relationship and aims to clarify certain aspects of
the older Act that have given rise to many differences of
interpretation,” he said.
SA Real Estate Investor Magazine SEPTEMBER/OCTOBER 2019
41