GUIDELINES FOR LANDLORDS

Before you let out your property, you need to decide:

• how much rent to charge
• whether you will manage the property yourself or use an estate agency.

How much rent to charge
Unless your property is rent-controlled (which very few are nowadays), you are free to charge any rent you wish . However, you need to be realistic and charge a rent which a tenant is willing to pay. In the case of a house or apartment, this is usually influenced by the rents being charged for other properties in the neighbourhood , and by the condition and features of the property.

The simplest way to set you rent is to ask an estate agency for advice.

Manage it yourself or use an estate agency?
You have a choice of the following options:

• find a tenant and manage the property yourself
• use an estate agency to find a tenant and then manage the property yourself
• use an estate agency to find a tenant and manage the property for you.

It is up to you to decide how much time and effort you want to spend managing the property.

Commission
If you use an estate agency, you will have to pay it a commission. There is no fixed commission rate in South Africa . Every commission must be negotiated.

Finding a tenant
The usual ways of finding tenants are:

• advertising in the newspaper and/or on the internet
• displaying "to let" signs on properties.

Receiving an offer to rent the property
If someone wants to rent your property, he or she should make the offer in writing. If an estate agent is handling the transaction, he or she will probably draw up the document for the applicant to sign. You should ask for credit references and for proof of the applicant's income.

If you accept the offer, you have a binding contract (a lease).

Terms of lease
Since August 2000, residential leases have been governed by the Rental Housing Act . In terms of this Act, a lease must contain the following minimum information:

• the landlord 's name and address
• the tenant 's name and address
• a description of the property , e.g. its address
• how much rent the tenant must pay and details of any escalation (increases in rent)
• any other moneys which the tenant must pay
• when the rent must be paid - it is usually at the beginning of each calendar month
• how much deposit the tenant must pay as security for any damage he or she might cause
• the period of the lease - if there is no specific period, the lease must state how much notice must be given to end it
• the landlord's and tenant's obligations towards each other
• a list of existing defects to the property
• any house rules that the tenant will have to obey
• a list of furniture and fittings (if the property is being let as a furnished unit).

A lease does not have to be put in writing. However, if the tenant would like it in writing - and we strongly recommend this - then you must put it in writing.

Landlord's and tenant's obligations
The law imposes the following obligations on landlords and tenants:

• the landlord must issue a detailed written receipt for every payment received from the tenant
• if the tenant pays a deposit , the landlord must invest it in an interest-bearing bank account , and must give the tenant a written statement of the interest earned whenever the tenant asks for one
• before the tenant moves into the property, he/she and the landlord must inspect the property and compile a list of defects, which must be attached to the lease
• when the tenant moves out, he/she and the landlord must inspect the property again to see if the tenant has caused any damage or lost any keys or other items - this should be done within three days before the tenant moves out - if the tenant does not agree, then the landlord must inspect the premises within seven days after the tenant has left
• if the inspection does not show that the tenant has caused any damage or lost any keys, the landlord must refund the full deposit plus interest within seven days
• if the inspection shows that the tenant did cause damage or lose keys, the landlord may pay for repairs and replacement out of the deposit, and must refund the balance plus interest within fourteen days
• if the tenant owes any money to the landlord, the landlord is entitled to deduct it from the deposit before refunding it.

If the landlord is using the services of an estate agency, the estate agency is responsible for meeting the landlord's obligations.

Paying the rent
As a landlord, you are entitled to receive the rent from the tenant whenever it is due. Typically, this will be the first business day of the calendar month. If you do not receive the rent on time, you have the right to sue the tenant for debt, or to obtain a court order to evict him or her from the property.

Disputes
If there is a dispute between a tenant and a landlord, either or both of them can refer it to the Rental Housing Tribunal for the province in which the property is situated. The tribunal has the power to take evidence, hold hearings, make decisions, and issue orders. Contact the provincial government for details.

Please note: we have compiled this information in good faith, but we accept no liability for any errors, or for any use that is made of it, or for any problems or damage that may arise as a result of using or acting upon this information.