Should tenants be compensated for improvements?

Navigating the complexities of rental agreements can be challenging for both tenants and landlords. PG van der Linde, rentals manager for Seeff Pretoria East, addresses some of the most common tenant issues and provides practical advice to frequently asked questions.

Can a tenant make changes to a rental property?

Answer: Tenant requests to modify a rental property are common. However, tenants cannot make any structural changes or install fixtures without written consent from the landlord. It’s advisable to seek approval for any changes, such as painting the walls, before moving in. Even with landlord approval, compensation for improvements is not guaranteed unless agreed upon in advance. Typically, the property must be restored to its original condition at the end of the lease.

Example: A tenant wants to install shelves in the living room. They must get written permission from the landlord and understand that they may need to remove the shelves and repair any damage before moving out.

What happens if the tenant needs to cancel the lease early?

An ordinary tenant can cancel a lease in terms of the Consumer Protection Act, but must give 20-business days’ notice. Van der Linde says a sudden vacant property can mean a loss of rental income for the landlord who is entitled to receive all rent up to the termination date, as well as a reasonable cancellation penalty to cover the period of vacancy before another tenant moves in, and the costs of sourcing a new tenant. 

Tip: Ensure your lease agreement includes a clear clause on cancellation penalties to prevent misunderstandings. Here are more tips that you should keep in mind in regards to lease agreements

What happens if the tenant can’t pay their rent on time?

The lease agreement will stipulate the date upon which the rent must be paid. It is usually paid monthly in advance on the first day of the month. If unpaid by the second day, it is late, and unless an arrangement is made, the landlord can then place the tenant in breach by sending a letter of demand. The tenant usually has 20-business days to make the payment, failing which the landlord can cancel the lease and give the tenant notice to vacate. The tenant will remain liable for any outstanding rent and the landlord will have the option of blacklisting the tenant. It is therefore best for the tenant to be upfront with the landlord if they are experiencing financial difficulties.

Here we take a look at how to handle evictions

How can a tenant ensure that they get their deposit back?

Van der Linde says the deposit generally serves as a security and damages deposit. The tenant is obliged to maintain the property in the same condition as it was on occupation, but excluding fair wear and tear.

Incoming and outgoing inspections, signed by both parties, will be important documents to track any damage. It is also recommended to take photographs, and possibly a video record of the condition of the property on occupation.

Although tenants are responsible for maintaining the property, it is also expected that some wear will occur during their tenancy. These are usually easy to spot such as faded paint or scuffed door handles. Anything beyond that which is obvious damage such as excessively worn carpets or stains, damage to walls or cupboards would be considered damage. In those cases, the tenant will be expected to undertake the necessary repairs or restoration. If the tenant fails, then the landlord can have it done, but the costs must be reasonable and agreed to by the client.

How can disputes between the tenant and landlord be resolved?

The Rental Housing Tribunal is a dispute mechanism to assist both parties (tenant and landlord) in an impartial manner. Almost any issue pertaining to the lease agreement and occupation of the property can be taken to the Tribunal. This could include failure by the landlord to refund the deposit, or deducting too much from the deposit. Any finding is final and binding on the parties but can be taken on review by the High Court.

Here is more on a recent High Court case involving owners of hijacked buildings