A watertight lease agreement is a must-have for any property manager or landlord.

A lease agreement is a binding legal document that needs to be correctly drafted within South African housing laws and must be regularly updated to ensure that disputes with unreliable tenants don’t fall through loopholes that could cost the property owner their investment.

“We deal with numerous tenant/landlord disputes. Most disputes deal with maintenance and payment problems. Forget verbal agreements, the safest way to protect your investment is through a written lease agreement that will protect your interests in the eyes of the law,” says Michelle Dickens, managing director of TPN, a registered credit bureau.

A route cause for many disputes arises from the misunderstanding of the tenant's or landlord's rights or obligations. This is further hampered by the countless variations of lease agreements used within the property rental industry.

Dickens recommends landlords or letting agents take the time to peruse their lease agreement with the tenant highlighting the following key clauses within the agreement:

- An accurate description of the property;

- Clearly outline payment responsibilities such as when rent is due and what other additional charges the tenant is responsible for such as utilities, refuse or sewerage;

- The duration of the lease, many leases tie the tenant into a 12-month fixed-term period without the option to give notice within the fixed term period;

- Maintenance clauses have to state who is responsible for what types of maintenance on the property. Common law provides that the landlord is responsible to hand over and subsequently maintain the property “fit for the purposes” for which it was let. But the tenant and landlord can contract through the lease agreement that the tenant maintain the property;

- Breach clause: Should the tenant default on rent a good breach clause can lead to the cancellation of a lease within 24 hours. However, it is essential to adhere to correct legal practices and procedures before eviction can take place.

“Often there is a misconception that when it comes to default payments there is a legal 7-day grace period; this is not the case and compounding this matter is the fact that landlords or property managers will remove doors or cut off electricity to get tenants out of the property - this is also illegal,” says Dickens.

“Seek legal advice when drawing up the lease agreement and in particular the main clauses; this will prove invaluable.”

Marlon Shevelew, owner and principle attorney at Marlon Shevelew and Associates, has some top tips for property managers and landlords:

- Any lease agreement has to be compliant with the Rental Housing Act. Ensure this by having the agreement checked by a specialist lawyer;

- The lease agreement has to be easy to understand and clearly outline the terms of the agreement;

- Never do anything illegal i.e. anything outside the terms of the lease agreement. Any unfair practices against the tenant will be used against you and prevent you from recouping any losses. No court can back a tenant if the landlord or property manager has acted within the bounds of the legal, signed lease agreement.

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