When looking for properties to rent, most tenants determine their budget based on the maximum amount they can afford. This can be a risky way to determine affordability and could lead to tarnishing your credit score by a missed or partial payment.
READ: Is your lease agreement legal?
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa says there is a less risky way of setting a rental budget. “Tenants should also ask themselves how much they ideally want to be spending on a home each month instead of asking what is the maximum they can afford,” he notes.
Typically, Goslett explains that a tenant needs to earn two- to three-times the monthly rental amount to qualify for the lease application. They will also usually need to have saved up for a deposit, which is normally around two-month's rent upfront. “This can be a good guideline for tenants, but they should also make sure to tailor that budget to their unique spending habits too,” he says.
Explaining what he means by this, Goslett recommends that tenants carefully consider their lifestyle expenses, like the name brand shoes they like to buy every so often or the weekend away that they like to plan every other month. “A person can get used to spending on these kinds of lifestyle expenses, so it is important to think about this carefully before signing up for a 12-month lease on a property that will make it impossible for you to continue to afford these kinds of lifestyle expenses,” says Goslett.
READ: Safeguard your deposit, leave your rental in a clean state
After reviewing their budget, a tenant might decide to cut back on their expenses to afford the more expensive rental, but he says that it is important for them to realise this ahead of time, otherwise they might continue to spend and not have enough money to spare by the time their rent is due.
“If you’re not sure how much you can afford, it can be useful to meet with a financial planner and an estate agent. The financial planner can help you work out your budget and the agent can then show you what you can get for that budget. As tricky as it might be, it is far better to find a home that you can comfortably afford than to rent a home that will cause you sleepless nights worrying about how you will afford to keep up with the rental repayments,” says Goslett.
READ: Rental market trends: Insights for landlords and agents
Additional information:
According to the Department of Human Settlements, a Rental Housing Tribunal has the authority to deal with disputes, complaints or problems between tenants and landlords in the rental housing dwellings:
- Non-payment of rentals
- Failure to refund the deposit
- Invasion of tenant’s privacy, including family members and visitors
- Unlawful seizure of tenant’s goods
- Discrimination by landlord against prospective tenants
- The changing of locks
- Lack of maintenance and repairs
- Illegal evictions
- Illegal lockout or illegal disconnection of services
- Damage to property
- Demolition and conversion
- Forced entry
- House rules
- Intimidation
- Issuing of receipts
- Municipal services
- Nuisance
- Overcrowding and health matters
In terms of section 13(13) of the Rental Housing Act 50 of 1999, a ruling of the Tribunal is deemed to be an order of a Magistrate's Court in terms of the Magistrate's Court Act, 1994.
READ: Rights and responsibilities in rental housing – know where you stand
In a previous article Abrahams & Gross’s Litigation and Dispute Resolution attorney, Henno Bothma discussed the important of a lease agreement and shared, for a landlord, renting out their property can be an excellent source of income, but it also comes with a degree of risk. To mitigate this risk, it is crucial to have a proper lease agreement in place to protect yourself and your property.
Bothma shares a few tips:
What is a lease agreement?
A lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of the rental arrangement. A well-drafted lease agreement should cover all aspects of the tenancy, including rent, security deposit, maintenance responsibilities, and tenant obligations. It should also provide a framework for resolving disputes and terminating the tenancy.
Why does a landlord need a watertight lease agreement?
Having a proper lease agreement is essential for landlords for several reasons. Firstly, it helps to establish a clear understanding between the landlord and the tenant about their respective rights and obligations. This can help to prevent misunderstandings or disputes that may arise during the tenancy.
Secondly, a lease agreement can protect the landlord’s property by setting out guidelines for maintenance and repairs. This can help to ensure that the property is maintained in good condition and that any damages caused by the tenant are addressed promptly.
Thirdly, a lease agreement can provide a framework for resolving disputes that may arise during the tenancy. This can help to minimise the risk of costly and time-consuming legal proceedings.
Fourthly, a lease agreement can help to protect the landlord’s financial interests by specifying the terms of rent payments, late fees, and security deposits. This can help to ensure that the landlord receives the rent on time and is adequately compensated for any damages or unpaid rent.
A sound lease agreement is essential
In summary, a well-drafted lease agreement is essential for landlords to protect themselves and their property. It provides a clear understanding of the terms and conditions of the arrangement, establishes guidelines for maintenance and repairs, provides a framework for resolving disputes, and protects the landlord’s financial interests.
Speak to a legal expert
As a landlord, it is important to seek the advice of a legal professional to ensure that your lease agreement complies with all relevant laws and regulations, and is tailored to your specific circumstances.
Our attorneys have considerable legal experience with all matters related to tenants, landlords, lease agreements and dispute resolution. Please contact our Conveyancing and Property Law or Litigation and Dispute Resolution team to assist with your issue.
* Disclaimer: The articles on these web pages are provided for general information purposes only. Whilst care has been taken to ensure accuracy, the content provided is not intended to stand alone as legal advice. Always consult a suitably qualified attorney on any specific legal problem or matter.
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