The ultimate landlord guide

a guide for landlords

What all landlords should know

What all landlords should know about renting and managing property. What you must do, may do, should do and must not do to ensure a rewarding and satisfying rental experience for both you and your tenant.
about the guide

Get your property ready to rent

When deciding to rent out your property, put yourself in the shoes of your 'ideal' tenant. What condition would you expect your property to be in if you were going to view it and move in?
how to prepare

Finding you the right tenant

How we find and place, quality, paying tenants. How to price your rental correctly and how we screen potential tenants to ensure that your property is well looked after and rent is paid in full and on time every month.
the ideal tenant

Legalities of renting your property

Etchells & Young provide a legally binding, 100% fully compliant lease agreement which has been drafted with the landlords best interests at heart. Typical questions asked by landlords and the answers thereto.
landlord faq's

Handling the tenants deposit

How the tenants deposit must be handled in terms of the Rental Housing Act (RHA). The time frames in which you have to refund a deposit after the tenant vacates, and correct use of the tenants deposit.
your tenants deposit

Rental inspections

The (RHA) Rental Housing Act requires that a joint inspection between the tenant and the landlord (or agent) be conducted before the tenant moves in as well as when the tenant vacates. How to properly conduct lawful property inspections.
inspection process
exit-inspection

Landlord and tenant obligations

The landlord and tenant have certain legal obligations to fulfill during the lease period. What are these responsibilities and which applicable to the landlord/tenant during the lease period.
who must do what

Renewing the lease

What are the landlords and tenants obligations in terms of the (CPA) Consumer Protection Act when it comes to renewing the lease at the end of the initial rental period. How to go about renewing a lease agreement with the current tenant.
lease renewal

South African property legislation

If you, as the landlord, are not 100% informed and fully compliant with the laws and regulations that govern this industry, you risk being exposed to potentially unscrupulous claims.
property legislation
Previous
Next
close
ultimate landlord guide

Introduction

Finding and placing a good tenant is quick and easy, right?

Well not always, but doing it right is definitely the place to start. We, at Etchells & Young, have decided to share what we have learned over the last 18 years in our dealings with both landlords and tenants, and to provide valuable input that any landlord can immediately use.  
We have built our success on the principle that correctly screening and placing quality tenants prevents a whole array of problems down the line. But it does go further than that too. Doing all you can to build and nurture a good, rewarding relationship between yourself and your tenant will make it that much easier to resolve the inevitable issues that crop up when people have differing objectives during the renting process.
You want a Return on Investment and your tenant wants to create a comfortable and happy home for his family over the next few years. We hope that you will find this information valuable and that it will guide you in choosing the right rental agent for you.

The ultimate landlord guide full page view

prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
close
ULTIMATE LANDLORD GUIDE

Get your property ready to rent

Is your rental property ready for your new tenant?

When deciding to rent out your property, put yourself in the shoes of your 'ideal' tenant. What condition would you expect your property to be in if you were going to view it and move in? First impressions are crucial! Ensure that your property is clean and that any defects or damage have been repaired and all is in good working order.

When getting your property ready to rent, pay special attention to the following:

Security

Security will always be a concern for people living in South Africa. This necessitates that your rental property has adequate security measures in place and that these are functioning optimally prior to occupation. Ensure that the garage doors and gates are fully operational and that all remotes are available and working.
Electrical + Plumbing
Pay special attention to; Electrical installations, all appliances, toilets and taps, mirrors and windows, light bulbs and fixtures, carpets, automated garages and gates, and keys are available for all doors and cupboards. Ensure there is no sign of damp or mould, as this could pose a health problem for future tenants.
Outdoor areas
The outside areas and garden should be neat and clean. It is always a good idea to have a garden that is as low maintenance as possible. This is not only more appealing to tenants but may safeguard the landlord against issues in the long run.  

The ultimate landlord guide full page view

prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
close
ULTIMATE LANDLORD GUIDE

Finding the ideal tenant

Why it is crucial to ensure that your rental property is competitively priced

Be sure to price your rental property correctly. Pricing it too high will result in it not being rented timeously and therefore, not receiving rental income for the time it remains vacant. Tenants generally use their budget as their main search criteria. Our rental agents are equipped to provide a competitive, market-related rental price for your property.

How we ensure good quality, paying tenants with our stringent tenant screening process:

1
2
3
4
5
6

Credit bureau and TPN checks

Our applications department complete a comprehensive credit bureau and criminal check using TPN (Tenant Profile Network), with access to the tenant's profile and rental payment patterns.

Confirm tenant's employment

Employment confirmation with the tenants employer via telephone to ensure we are speaking to a real company. Our applications team is trained in identifying fraudulent applications.

Verify tenant's salary

Verification of salary via the employer’s HR Dept to ensure that the information the tenant has provided in their application is correct, as well as to ensure their affordability.

Verify the tenant's bank account

Verify the bank account number provided with the banking institution. Our application specialist scrutinises the tenant's spending habits to ensure that the tenant will comfortably be able to afford the monthly rental, and that past rental payments have been paid in full from his bank account.

Obtain landlord references

Obtain tenant references from current or previous landlord, and inquire specifically about prompt rental payment and if the tenant looked after the property.

Why Etchells & Young

You are entrusting your entire property asset to the tenant. At Etchells & Young our dedicated applications department applies strict screening criteria to ensure we place a qualified, paying tenant in your property.

How will the ideal tenant find your rental property?
Put yourself in your ideal tenant's shoes – where would you start to search for a property? Most tenants use SA's top property portals to search for available rental properties. Etchells & Young advertise our listings on Private Property, Property 24, MyProperty (among others) and our own website, as well as on our social media pages.

IMPORTANT NOTE: Good quality assets/images are a great way to showcase the rental property to the right tenants. Ensure that the property is clean, neat and tidy when your agent comes to take the photos. Our agents have been trained by a professional photographer to ensure the best possible impression of your property is put forward.
The ultimate landlord guide full page view
prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
close
ULTIMATE LANDLORD GUIDE

FAQ'S answered

What happens if the tenant does not pay and refuses to vacate?

Can the lease be cancelled if the tenant does not pay the rent?

Why do I have to pay for maintenance?

What does Rental Management mean?

Why should I let Etchells & Young manage my property?

Etchells & Young provide a legally binding, 100% fully compliant lease agreement. Drafted with the the interests of the landlord at heart, the lease agreement draws on the expertise of our Property Attorney, Harris Incorporated, TPN, and our Legal and Compliance Director, Harry Meyburgh.

The ultimate landlord guide full page view

prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
close
ULTIMATE LANDLORD GUIDE

Handling the tenant deposit

The Rental Housing Act regulates the treatment of the tenant's deposit.

1
2
3
4
5

The deposit must be invested in an interest-bearing bank account and all interest earned during the lease period belongs to the tenant. The tenant may at any time during the lease period request that the landlord provide written proof of the deposit invested and the interest earned thereon, and the landlord is obligated to provide such proof.

The tenant may at any time during the lease period request that the landlord provide written proof of the deposit invested and the interest earned thereon, and the landlord is obligated to provide such proof.

The deposit belongs to the tenant up to the point that the tenant owes you any money in terms of the lease agreement. The details of the deposit, including the amount of the deposit and how it will be treated, must be contained in the lease agreement. If not, you cannot deduct any money owed to you by the tenant from the deposit!

The landlord determines the size of the deposit. An acceptable industry standard is a deposit of one month's rent for an unfurnished property and two months' rent for a furnished property.

The deposit can be increased to offset any other risk that the landlord deems likely. However, you shouldn't limit your chances of renting your property by asking prospective tenants for an unreasonably large deposit.

When the rental is managed by Etchells & Young, the tenant's deposit is kept in a secure interest-bearing trust account. At the end of the lease, the landlord may apply the deposit plus interest earned towards the payment of all amounts for which the tenant is liable under the lease.

Time frames for refunding the tenants deposit

1
At the end of the lease, the landlord may apply the deposit plus interest earned towards the payment of all amounts for which the tenant is liable under the lease. The balance of the deposit and interest must then be refunded to the tenant not later than 14 days after the restoration of the property to the landlord. (This time frame is relevant only if the deposit is used by the landlord for amounts owing and not paid directly by the tenant.)
2
Should no amounts be due and owing by the tenant, the landlord must refund the full deposit and interest to the tenant within 7 days of the expiry of the lease.
3
A third time frame exists in the Rental Housing Act for the refunding of the deposit. This entails that the tenant fails to respond to the landlord’s request to do an exit inspection, which the landlord then completes independently. In this scenario, if the landlord records damage done by the tenant, he may deduct the amount owing by the tenant and refund the balance plus interest within 21 days after the expiry of the lease.

The ultimate landlord guide full page view

prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
close
ULTIMATE LANDLORD GUIDE

Rental inspections

The purpose of doing an entry inspection

The (RHA) Rental Housing Act requires that a joint inspection between the tenant and the landlord (or agent) be conducted before the tenant moves into the property.  The aim of the inspection is to record the condition of the property and the existence or not of any defects or damage, as well as to determine the landlord’s responsibility for rectifying said defects. The landlord is only required to rectify items that will impact  the beneficial occupation of the tenant. The tenant cannot be held liable for items registered on the defects list (usually called an entry inspection) when the lease ends.
DID YOU KNOW that if a joint entry inspection is not done in the presence of the tenant at the start of the lease, this is deemed to be an acknowledgement by the landlord that they will have no claim against the tenant for any damage caused to the property at the end of the lease. At Etchells & Young we utilise comprehensive online property inspection software that was specifically developed for rental property inspections. Making it a lot easier to compare the entry and exit inspections, which is an integral part of managing the property rental and the tenant's deposit.
1
2
3

Purpose of the exit inspection

The purpose of the exit inspection is to determine if the tenant caused any damage to the property during their lease period.  The approach during the exit inspection is simply noting the condition of the property at the time of the exit. Either the stove is clean or dirty. The carpets are clean or not. That window has a crack or it does not. That light bulb is working or not. The walls have stains or they don’t. The tenant will sign the document upon inspection and the entry and exit inspections will then be compared to make a list of defects that have occured during the lease period.

Fair wear and tear vs damage

Items damaged as a result of fair wear and tear are for the landlord’s account. Fair wear and tear is defined as damage to an item over time due to the normal or ordinary use of that item, or normal exposure to the elements or nature. As a rule, the tenant is responsible for any items that need to be cleaned or are damaged (not as a result of normal use) either deliberately, accidentally or negligently. The RHA (Rental Housing Act) specifies that the cost of repairs done by the landlord, using the tenant’s deposit, must be “reasonable”.

Handling repairs due to damages

Should there be any damage caused to the property by the tenant at this point (the exit inspection), the tenant has effectively waived their rights to receive quotes or to do the repairs themselves. The tenant has the right to see the receipts or invoices of the actual cost of repairs that the landlord has done. The landlord cannot withhold any money for damages if the damages are not actually repaired. The tenant's deposit may only be used if the landlord has incurred the cost of the repairs that need to be done. The deposit plus interest can now be used to pay for any repairs that the tenant is liable for (if any), and the balance must be refunded to the tenant in terms of the timelines discussed in the deposit section.

The ultimate landlord guide full page view

prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
close
ULTIMATE LANDLORD GUIDE

Landlord and tenant duties

As a landlord you are obliged to ensure that the tenant receives undisturbed beneficial use of the property that is reasonably fit for human habitation.  In terms of the Rental Housing Act, the tenant has the right to privacy and as such the landlord may only exercise his right to inspection in a reasonable manner and after reasonable notice to the tenant. You may then only enter the property for the following reasons:

The Tenant has the right not to have:

tick
Their person or home searched.
tick
Their property searched.
tick
Their possessions seized (except in terms of the law with a court order).
tick
The privacy of their communications infringed upon.

The tenant's duties in terms of maintenance and repairs

The tenant has the responsibility to dispose of garbage and waste in a safe and clean manner (per municipal services and containers/bins provided). To maintain the property in a clean, tidy and safe state, and to use all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances in a reasonable manner.

The tenant must refrain from intentionally or negligently damaging the property or common property (intentional and negligent damage is for the tenant’s account).

Maintain, replace or repair electrical globes, fittings and switches as well as being liable for all water-borne taps, stoves, locks, handles and windows. Maintain and keep the garden neat and tidy (if applicable). Maintain the swimming pool, including pumps, hoses and accessories, subject to fair wear and tear (if applicable).

Previous
Next

The Landlord’s rights

1
2
3
4

Prompt and regular payment of rent (NOTE: The rent is payable without demand or notice at the time and place agreed upon in the lease.  You, therefore, do not have to first issue an invoice before the tenant pays the rent due). Recover unpaid rent or other amounts due after a ruling of the Tribunal or court order.

Terminate the lease on grounds that do not constitute an unfair practice and are in accordance with the lease agreement. If the property appears to be abandoned by the tenant. Pursuant to an order of court.

Inspect the property and premises, receive the property in a good state of order and repair on termination of the lease, claim compensation for damage to the property caused by the tenant, and to make any necessary repairs to the property.

Show the property to any prospective tenant, purchaser, bank or its agents.

Landlord's duties
1
2
3
4

To maintain the outside of the building, including the walls and roof, and to maintain electrical, plumbing, sanitary, heating, ventilation, air-conditioning and elevator systems (as and if applicable). Provide the tenant with the appropriate containers/bins for the removal of rubbish.

To repair damage caused by fair wear and tear, and to do the repairs that are identified during inspections for which the landlord is responsible. On receipt of a notice from the tenant, to do such repairs, within 14 days of the notice unless otherwise agreed by both parties.

Provide water, electricity or gas as stipulated in the lease and to not cause the non-supply or interruption of any of these services. Ensure the tenant is not exposed to risk of interruption or loss of service provider when such a payment becomes due.

If the tenant has made payment to the landlord for the service, only charge them the exact amount of the services consumed (if metered), without requesting payment of any fee and provide the tenant with a copy of the accounts for the services rendered.

The ultimate landlord guide full page view
prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
close
ULTIMATE LANDLORD GUIDE

Renewing your tenants lease

Determining whether to renew the current lease

As the end of the initial term of the lease approaches, you, as landlord, have the option of renewing the lease with the tenant or terminating the lease at the end of the initial period.

Keep in mind that it is usually always worth renewing a lease with a good tenant who pays their rent on time and looks after your property than starting the search from scratch.
‍
However, if your tenant has been less than ideal and is always walking the thin line between right and wrong, constantly paying late or not at all, and not looking after your property, then this is the ideal time to terminate the lease and place a good, well-paying tenant instead.

The Landlords obligations in terms of the Consumer Protection Act

You are required to notify the tenant in writing not more than 80 days, nor less than 40 business days before the end of the lease of its impending expiry date.  If you do not wish to continue or renew the lease, you must intentionally notify the tenant of this and invite them to an exit inspection within 3 days of the expiry of the lease.

Should you wish for the lease to continue, you must invite them to renew the lease and then include in the above notice any material changes. Such changes may include an increase in rent and deposit, or any other changes to the lease that would apply if the agreement is renewed. In addition, changes may include advising the tenant of the options available to him to either accept the renewal for another fixed period, cancel the agreement without penalty on the expiry date, or continue on a month-to-month basis, subject to your material changes.

If neither the tenant nor the landlord has directly expressed the intent to renew or terminate the lease by the expiry date, the lease will automatically continue on a month-to-month basis until such time that the tenant or landlord expressly direct the termination or renewal of  the agreement OR the tenant has agreed to the renewal of the lease for a further fixed term.

Previous
Next

The ultimate landlord guide full page view

prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
close
ultimate landlord guide

South African property legislation

Criminal offenses in terms of the Rental Housing Act:

tick
Not attaching a defects list to the lease.
tick
Not attaching house rules to the lease.
tick
Non-compliance with a Rental Housing Tribunal ruling, or attempting to deceive them.
tick
Unlawfully locking a tenant out or shutting off utilities – spoliation is a criminal offence!
tick
Not repaying a tenant's deposit and interest.
tick
Not providing a habitable dwelling (i.e. failure to do required maintenance and repairs).
tick
Not reducing a lease to writing.

The Rental Housing Act (RHA)

This Act regulates the relationship between landlords and tenants and it provides for dispute resolution by the Rental Housing Tribunal. It was brought about to protect the rights of the landlord and the tenants alike. The Bill was amended in 2014 and it is important to familiarise yourself with some of the more notable changes to the Act and how they affect you as the landlord or tenant.

DOWNLOAD THE ACT

The Consumer Protection Act (CPA)

An Act to promote a fair, accessible and sustainable marketplace for consumer products and services and for that purpose to establish national norms and standards relating to consumer protection. To provide for improved standards of consumer information and to prohibit certain unfair marketing and business practices.

DOWNLOAD THE ACT

The Financial Intelligence Center Act (FICA)

The act exists to prevent money laundering, fraud, tax evasion, financing of terrorism & other related criminal activity that aims to misuse our financial systems. The Act requires certain accountable institutions such as Banks, Estate agents and Attorneys to validate and verify their client's identity before a business transaction can take place

DOWNLOAD THE ACT
Previous
Next

The ultimate landlord guide full page view

prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation

What to
expect from your

rental agent

OUR property rental process
Your agent will begin by visiting your rental property to take photographs, familiarise themself with the property and surrounds, and to note special benefits for advertising. Your agent will also help you set a market related rental price.

Advertising

your property.

OUR property rental process
Your property will be advertised extensively on major South African property portals; namely Private Property, Property24, MyProperty, Property360, Qwengo, Immoafrica and Etchells & Young as well as our social media platforms.

Viewing with

prospective tenants.

OUR property rental process
Your agent will arrange to view the property with prospective tenants. Before scheduling a viewing your agent will ensure that the tenant is suited to the property and meets the financial requirements for the specified rental price.

The tenant

application.

OUR property rental process
Our applications department conduct; A full TPN (Tenant Profile Network), affordability check, previous landlord reference and employment confirmation. Our applications team are highly experienced in detecting fraudulent applications.

Drawing up

the lease.

OUR property rental process
Your agent will coordinate the signing of the lease agreement and any negotiations between yourself and the tenant. We provide a legally binding, 100% fully compliant lease agreement. Drafted with the best interests of the landlord at heart.

The tenants

deposit.

OUR property rental process
We will collect the deposit and first month's rental on your behalf. Should you choose our rental management option, we will keep the tenants deposit in an interest bearing trust account for the duration of the lease and any renewal period after that.

Key handover

entry inspection.

OUR property rental process
Your agent will facilitate the key handover and conduct a thorough entry inspection which is kept on record. If we manage your property we will arrange and coordinate any maintenance during the lease period and for any renewal period after that.

The exit

inspection.

the property rental process
Once your current tenant has vacated, your agent will do a thorough exit inspection. The entry and exit inspections will be compared against each other and any repairs that need to be done as a result of damage done by the tenant will be deducted from their deposit.
Previous
Next

The ultimate landlord guide full page view

prepare for rent finding a tenant tenants deposit landlord faq's inspections obligations lease renewal legislation
google reviews
What our clients say about us
PROPERTY BLOG
Advice for landlords
read all our articles
Read more about Tenant Affordability Levels Threaten Rental Growth
Tenant Affordability Levels Threaten Rental Growth
Read the article
Read more about Mould And Damp: Who’s Responsible?
Mould And Damp: Who’s Responsible?
Read the article
Read more about Property Market Outlook for 2023
Property Market Outlook for 2023
Read the article
Read more about Case Study: Rental Housing Tribunal Ruling - Early Cancellation Penalty
Case Study: Rental Housing Tribunal Ruling - Early Cancellation Penalty
Read the article
Read more about The Impact of Rising Inflation on Residential Rentals & Sales
The Impact of Rising Inflation on Residential Rentals & Sales
Read the article
Read more about Rebound in Rental Growth
Rebound in Rental Growth
Read the article
Read more about Corporate Tenancy at Etchells & Young
Corporate Tenancy at Etchells & Young
Read the article
Read more about Invest in Your Investment
Invest in Your Investment
Read the article
Read more about What is POPIA? [Part 1]
What is POPIA? [Part 1]
Read the article
Read more about Rental Market Shows Signs of Improving
Rental Market Shows Signs of Improving
Read the article
Read more about Rental Market Puts Pressure on Landlords
Rental Market Puts Pressure on Landlords
Read the article
Read more about The Impact of Covid-19 on Tenant Payment Performance
The Impact of Covid-19 on Tenant Payment Performance
Read the article
rEAD ALL our articles
close

Get in touch with us today

PLEASE NOTE: We only operate in Randburg, Sandton, Fourways and Roodepoort.
close