For those who are relying on rental income, it is important to be prepared and to know what to do should there be a late payment over this time.
READ: Tenants’ rights and landlords’ responsibilities
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, explains that a missed or late payment might not always be budget related. “A late payment can also happen by accident. Sometimes the way public holidays fall affects when the funds reflect in your account, or there could be a bank system problem that also impacts the rent arriving in your account,” he notes.
However a missed or late payment might have occurred, to make sure that it doesn’t have a knock-on effect on a landlord’s bond repayments, RE/MAX of Southern Africa suggests the following:
- To avoid setting false expectations, never allow a late or missed payment to go unnoticed. Chat with your tenant immediately to find out what has caused the delay. If payment is not made after bringing it to the tenant’s attention, draft a formal letter to notify them that they are in breach of contract.
- Allow enough room between the tenant’s rental payment date and the date on which your bond repayment is deducted so that you can make a plan if needed.
- In case a tenant misses or is late on a payment, be sure to have the full bond repayment amount available in an accessible savings account.
- Remember that the formal eviction process can be lengthy. The longer you take to act on a late or missed payment, the longer it will be before you can legally evict a tenant who continues to miss payments.
READ: Top tips for becoming the ideal tenant
“As emotionally challenging as it can be to address these situations, it is important to remember that your bondholder will penalise you if you default or pay late, so there is no reason why you should not remind tenants of their legal obligations to you. A rental agreement is a legally binding business contract. If you are tolerant and play easy-go-lucky, your tenant might think that there will be no consequences if they pay late again, and this could become financially devastating to you as the bond holder.”
This is where working through a rental agent can be incredibly useful. “Professional rental agents have access to tools and resources for screening prospective tenants to minimise the chance of defaulting tenants to begin with. They are then also equipped to deal with non-paying tenants on your behalf which means that the relationship with your tenant does not have to become personal,” he notes.
“Chasing money and dealing with difficult tenants can be extremely stressful. Working with a professional RE/MAX rental agent will make your life so much easier. Don’t let the possibility of a defaulting tenant stop you from making your investment property work for you – enlist the help of your local RE/MAX Office for the best chance of having as stress-free a rental process as possible,” he says.
READ: Landlords: A guide to finding the ideal rental candidates
Additional information:
The Rental Housing Tribunal has the authority to deal with disputes, complaints or problems between tenants and landlords in the rental housing dwellings:
Any practice unreasonably prejudicing the rights or interests of a tenant or a landowner - It may, amongst other things relate to:
- Illegal lockouts or illegal disconnection of services (water, electricity etc.)
- Failure to refund a deposit
- Damage to property
- Demolitions and conversions
- Illegal evictions (The Tribunal does not have jurisdiction to hear applications for
- eviction orders)
- Forced entry
- Non-compliance with house rules
- Harassment and intimidation
- Failure to issue receipts
- Unlawful seizure of tenants’ goods
- Prohibiting the establishment of tenants’ committee and tenants’ activities
- Termination of Municipal services
- Causing a nuisance
- Overcrowding and causing health hazards
- Exploitative rentals and determination of fair rentals
- Lack of maintenance and repairs
- Non-payment of rent
- Discrimination by landlord against prospective tenants
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.
Additional information: Just Property shares five tips that will help you rate as a top tenant (read the article here)
So what should tenants do to stand out as the best choice for landlords?
According to Berry Everitt, CEO of the Chas Everitt International property group, who previously shared tips on what tenants should consider if they want to stand out as the best choice for landlords, tenants should take the time to ensure that their credit record is in really good shape, and will also stand up to scrutiny as far as their history of on-time payment is concerned. No landlord wants to have to repeatedly ask for payment or get it late every month.
READ: Buying or renting property: Who pays for what?
"Prospective tenants should also be able to provide good references from any previous landlords and compile all the information and paperwork they may need to complete a rental application before they start house hunting. This includes a list of previous addresses, their bank account details, ID document, employer information, and recent payslips.
"They should also have the funds immediately available to pay a deposit, usually equivalent to a full month’s rent, and any water and electricity supply connection fees that are required. If they have to wait for a previous landlord to return a deposit, before they can afford to pay a new landlord, they may well lose out."
READ: A step-by-step guide for first-time renters
In addition, while they should be very clear about their absolute “must haves” in a rental home - and what they really don’t want – they should try to be flexible on the rest of their criteria so that they can make a quick decision when necessary, he says.
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.
Author* Abrahams & Gross’s Litigation and Dispute Resolution attorney, Henno Bothma
*Article updated 24 April 2024
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