This means first-time landlords renting out houses, apartments, garden cottages, backyard dwellings or hostel rooms must understand their responsibilities towards tenants and ensure they comply with the law.
The warning comes as South Africa’s rental market continues to grow, with approximately a quarter of households now renting and urban tenant volumes rising. Growing demand has also contributed to increased buy-to-let investment, bringing more first-time landlords into the rental market.
According to Seeff, failing to understand the RHA can expose landlords to financial and legal risks. Even routine aspects of managing a rental, such as billing, are subject to specific requirements.
The Act sets out several key responsibilities landlords must understand and follow throughout each tenancy.
Written leases required: The RHA applies to both written and verbal lease agreements, but landlords are obligated to provide tenants with a written lease agreement.
Seeff says having a written agreement is also important for protecting the landlord’s interests by clearly setting out the terms and conditions of the tenancy.
Landlords must ensure that the property is fit for purpose when the lease begins and maintain its structure, plumbing, electrical systems and fixtures throughout the tenancy.
They are also required to conduct joint incoming and outgoing inspections with the tenant, accompanied by a detailed condition report.
These documents can help prevent disputes about the condition of the property when a tenant moves in and when they vacate.
Billing is also regulated: One common misconception among landlords is that monthly invoices are unnecessary if tenants pay rent directly into the landlord’s bank or bond account.
Seeff says this is incorrect.
All landlords must provide a monthly invoice showing the rent due, as well as invoices and receipts for other monthly or incidental expenses. This requirement applies even to private individuals renting out a single property.
Deposits and maintenance: Tenant deposits must be placed correctly in an interest-bearing account and may not be used by landlords for maintenance during the tenancy.
Any deductions from the deposit may only be made at the end of the lease, must be lawful and must be supported by receipts.
Landlords are also responsible for addressing maintenance and repairs within a reasonable timeframe. Failure to do so can constitute an unfair practice and expose landlords to penalties under the RHA.
Respecting tenant rights: Landlords must also respect tenants’ rights to privacy and the undisturbed enjoyment of the property.
Actions such as cutting off utilities, locking tenants out of the property or carrying out unlawful evictions can result in severe penalties, including fines or imprisonment.
Where disputes arise over breaches of the lease or unfair deductions from a deposit, landlords and tenants can approach the Rental Housing Tribunal, which provides a free mechanism for resolving disputes without expensive court proceedings.
Samuel Seeff, chairman of the Seeff Property Group, says using a specialist rental agency can help landlords minimise the financial and legal risks associated with managing a property.
“Utilising a specialist rental agency can minimise the financial and legal risks by ensuring compliance with the RHA, and correctly managing the day-to-day operations of the tenancy,” says Seeff.
Rental specialists can assist with tenant screening, legal documentation and maintenance, helping landlords manage their properties while protecting their investments and maximising their financial returns.
