IEASA National - News

Proposed changes to Rental Law   Article Date :6 Feb 2007 Government proposes several changes to the Rental Housing Act The government proposes to make several changes to the Rental Housing Act, the legislation that governs the letting of houses, townhouses, flats, and other residential properties. Dr Willie Marais, president of the Institute of Estate Agents of South Africa, says the proposed amendments are open for public comment until February 2, and recommends that estate agents, landlords, and tenants take note of them and submit any comments they may have to the Department of Housing. "Evidently, a number of problems have arisen since the Act was brought into operation in August 2000," says Marais, "and the proposed amendments are designed to solve them. They include widening the powers of the provincial Rental Housing Tribunals, and changing some of the requirements for receipts, deposits, and costs." Whether a lease is written or unwritten, it must comply with the basic conditions set out in the Act. One of them requires a landlord to issue a tenant with a detailed receipt for each payment. Marais says that the proposal now is that a landlord could apply to the local Rental Housing Tribunal for exemption. The Act allows a landlord to require a tenant to put down a key-and-damages deposit before moving in to the property. The government now proposes to add a rider that a deposit is a once-off payment that is not affected by subsequent rent increases. This, says Marais, suggests an end to the practice of requiring a tenant to pay an additional deposit every time the rent is increased, to keep the deposit equivalent to at least one month's rent. "Tenants would no doubt welcome this," he says, "but landlords and managing agents may have a problem with it." The draft amendment also includes a new clause which makes it clear that the landlord must pay the stamp duty on the lease, that a tenant would not be obliged to pay any contract fees unless the landlord provides proof of actual expenditure, and that any costs involved in inspecting a property when the tenant moves in and when he moves out, should be shared equally between the landlord and tenant. Marais says the government proposes to increase the powers of the provincial Rental Housing Tribunals - which arbitrate disputes between landlords and tenants - by enabling them to authorise the seizure of defaulting tenant's possessions, and the repossession of properties. At present, landlords can do this only after obtaining a court order. Presumably, says Marais, it would be easier, quicker, and cheaper, to refer such matters to a tribunal instead. In practice, however, most Provincial Rental Tribunals are not operating effectively currently, if at all, and such a change would necessitate those Tribunals to be upgraded dramatically. Copies of the draft amendment are available from the Government Printer (Government Gazette 29503 dated December 22, 2006). Comments must be submitted to the Department of Housing by February 2, 2007. CLICK HERE TO RETURN TO THE MAIN NEWS PAGE