Tenant's Guide
Especially in high-demand suburbs, renting can be a race against time where the fastest applicant claims victory. To avoid the disappointment of losing out on your ideal property, be fully prepared before starting the process of looking for a place to rent.
Tenant's Guide
Especially in high-demand suburbs, renting can be a race against time where the fastest applicant claims victory. To avoid the disappointment of losing out on your ideal property, be fully prepared before starting the process of looking for a place to rent.
Application
Before you can apply for tenancy, there are a few things that you need to have ready:
- Find out what you can afford. Typically a tenant needs to earn two- to three-times the monthly rental amount.
- Check your credit score. You can build up a credit score from paying on time on things like a cell-phone contract or a store account.
- Have a copy of your latest payslip, latest three-month bank statement, as well as a copy of your ID readily available when you go to view a rental property.
- Save for a deposit, which is normally around two-month's rent upfront.
Contract breach
A breach of contract can be defined as a legal cause of action in which a legally binding agreement (like the lease agreement) is not honoured by one or more parties who have signed the contract. Make sure to fully understand your lease agreement to avoid being in breach of contract.
Rent escalations
On the anniversary of the lease, the landlord and tenant typically decide upon two things: whether to agree to a renewal and secondly what escalation will apply. An industry standard seems to be 10% per annum, but the landlord may decide to forego the increase or to increase this more or less than 10% to ensure the rental is market-related.
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Late payments
Landlords cannot simply evict their tenant for a late payment, as they're protected by the Prevention of Illegal Eviction from Unlawful Occupation of Land Act, No. 19 of 1998 (PIE Act). However, continued failure to pay your rent on time puts you in breach of contract and can lead to your eventual eviction.
Disputes
There is a free portal of advice that both landlords and tenants can use to resolve disputes without incurring massive legal fees, namely the Rental Housing Tribunal (RHT). The RHT will inform landlords and tenants of both their rights and obligations regarding the Rental Housing Act and will then investigate and mediate the situation at hand to resolve it by making recommendations to the relevant parties.
Ending the lease
Normally, you will have to wait until your lease expires and issue notice that you will not be renewing the lease. The notice period will be stipulated in the rental agreement in the form of a renewal clause. If you want to terminate the lease before it has run its course, you may be held liable for breach of contract unless you follow the right steps and give the right amount of notice.
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