Rental Guide for Tenants and Landlords

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1 for Tenants and Landlords

2 InterACTIVE book.links are marked in this colour Please read a word about navigation - click HERE Rental Guide for Tenants and Landlords RE/MAX Midlands 196 Chapel Street, Pietermaritzburg 3200 Republic of South Africa First Edition Copyright RE/MAX Midlands 2003 M I D L A N D S RE/MAX Midlands Rental Department 196 Chapel Street, Pietermaritzburg 3200 P.O. Box 1182, Pietermaritzburg 3200 South Africa Phone: (intl: ) Fax: (intl: ) Web: Published by Internet Clinic CC - www internetclinic.org All rights reserved. No part of this publication may be reproduced, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publishers. This book is distributed subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated for financial gains without the publisher s prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser.

3 A Word About Navigation How to page through this E-book In your AdobeAcrobat Reader, click on "View" and then on "Fit Width" for the best viewing Otherwise, select the "zoom-in" tool on the Tool Bar and click on the page, until you can read comfortably L Choose "hand" tool on the Tool Bar to be able to click on links All links in our books are in this colour N When you move "hand" coursor over any link, it will change to another shape: N J N J W - Click now and go to another page in the book - like here - Click now and go to a website on the WWW - like here 4 Move to the next page: Move to the previous page : 3 Move to the first page of Move to the last page of the book (front cover): 3 the book (back cover): 4 Move to the previous view (the page visited before current page): Move to the next view (the page visited after current page): Go to the contents of this book - click on this image on top of any page > Go to the contents of this book - click on Rental Guide on top of any page Visit RE/MAX Midlands website - click RE/MAX Midlands Online at the bottom of any page iii RE/MAX Midlands Online

4 Contents Contents Please click on the page number to view a given topic A Word About Navigation... Contents... Preface... Page iii Page iv Page 5 Topics: 1. Clauses in Lease Agreement... Notice Periods... Rental Payments and Rental Increases... Inspections... Rental Deposits... Lease Fee And Receiver of Revenue Duties Whom to Notify before Moving? Frequent Problems Experienced by Tenants RE/MAX Assistance for Tenants RE/MAX Assistance for Landlords... Page 6 Page 6 Page 6 Page 7 Page 7 Page 7 Page 8 Page 9 Page 11 Page Why Should You Use RE/MAX Assistance in Renting?... Page 13 Iv RE/MAX Midlands Online

5 Preface Preface You might prefer to rent a flat or property rather than buying it - for different reasons: You are undecided regarding your future plans You have been relocated temporarily by your employer You are not financially ready to buy a home You are single and prefer renting You are studying or undergoing internship training You are a businessman on the run You have personal reasons Whatever your reason might be, you definitely have your preferences regarding the size of the property, its utilities, rental payments, location etc. RE/MAX Rental Department has a range of properties and flats to suit personal and financial needs of tenants. Also, if you are a landlord, we can find a perfect tenant for you. Our Rental Guide explains crucial issues concerning rental and gives you tips on common problems experienced by tenants. Whether you are a tenant or a landlord, the guide will help you in negotiations and preparing the correct Lease Agreement. 5 RE/MAX Midlands Online

6 Clauses in Lease Agreement Clauses in Lease Agreement 1. Notice Periods Notice must be in writing. Notice must be a full calendar month. No notice may be given before termination of the period stated in the Lease Agreement. The same notice period rules apply to the landlord. If the lease is broken, a R penalty fee will be charged to the tenant. It is only by mutual agreement that the lease can be cancelled prior to the termination date. 2. Rental Payments and Rental Increases The first month rental must be paid in full before occupation takes place. The rental is due on the first day of every month, payable a month in advance. Interest of 2% per month and an administration charge of R75.00 will be charged on overdue rental. During the initial lease period there will be no rental increase unless there is an increase in Municipal rates or levies (if applicable). At the discretion of the landlord, rentals may be escalated on a yearly basis or at the end of the initial lease period. A full calendar month notice must be given before a rental increase can be implemented. There is a R75.00 charge for RD cheques. 6 RE/MAX Midlands Online

7 Clauses in Lease Agreement 3. Inspections Prior to occupation, a joint inspection between the tenant and the inspector must be performed. This is to determine any defects or damage to the property. A written record of this inspection is taken, and is signed by the inspector and the tenant. A copy of the inspection is attached to the Lease Agreement. If a joint inspection is not done, then the recorded inspection will be seen as free of any defects or damages. 4. Rental Deposits The deposit is usually equivalent to one month rental and is payable before occupation. The deposit is held in our trust account. Once you have vacated the property and a final inspection has been conducted, you will be repaid your deposit - after deductions have been made for any repairs that may be required. Before the deposit is refunded, we require proof from the Municipality that all electricity, water, and refuse removal charges have been paid. The deposit may not be used as the last month's rental. The deposit will be refunded within 7 days of expiration of the lease should there be no defects or amounts owing. Should there be defects or amounts owning, your deposit will be refunded within 14 days of restoration of the property. 5. Lease Fee And Receiver of Revenue Duties Lease fee of R is payable once the Lease Agreement is signed. Stamp duty is payable once the Lease Agreement has been signed. 7 RE/MAX Midlands Online

8 Whom to Notify before Moving? Whom to Notify before Moving? Don't forget to notify the following people and service providers before you move: Family and friends Doctor/dentist/optician Paper/magazine deliveries Receiver of Revenue Accounts and accountant Schools Postal services Department of the Interior (ID Book) Bank and building societies Lawyer Minister Sporting clubs Insurance company Voters roll Automobile Association Telkom Municipality Medical Aid Employer MNet/DSTV/SABC 8 RE/MAX Midlands Online

9 Frequent Problems Experienced by Tenants Frequent Problems Experienced by Tenants After moving in, tenants might experience different and sometimes annoying problems. The table below list the most common predicaments and solutions to them: Our geyser or water pipers have burst... Our toilet is blocked or overflowing... We have electrical problems... During weekdays between 07:30-17:00, contact our offices. During weekends, after hours and on public holidays, contact a plumber or electrician to attend to the problem and then contact us first thing Monday morning. We have a burglary or an attempted break-in... Contact the Police immediately and then contact our offices and we will assist you further. We have lost keys or locks for the property... The replacement of these keys or locks is the tenant's responsibility. Continue... 9 RE/MAX Midlands Online

10 Frequent Problems Experienced by Tenants We would like to make alterations to the property (e.g. re-carpeting, painting, removing foliage, fitting security gates etc.)... Contact our office prior to doing any alterations, in order that we can get permission from the landlord. We would like to erect a satellite dish or an aerial... Contact our offices prior to doing so and we will, in turn, contact the owner and the body corporate (if applicable). Who pays the monitoring and armed response fees for alarm system? These costs are for the tenant's account. Who is responsible for the maintenance of the garden and pool? (if applicable) This is the tenant's responsibility. Please bear in mind that you may not remove foliage without first contacting our offices. How do we connect electricity and telephones? This is the responsibility of the tenant. However, we will assist where possible. 10 RE/MAX Midlands Online

11 RE/MAX Assistance for Tenants RE/MAX Assistance for Tenants Are you looking for a home to rent? We offer a wide selection of houses, simplexes, duplexes, flats, townhouses and other properties ranging in price, size, location, facilities and character. Regardless of your personal and financial circumstances, we will find a suitable place for you. As part of our service, and in accordance with government legislation, we assist tenants in the following ways: Lease negotiation and completion including revenue stamps. Retaining deposit in an interest bearing account. Collection of monthly rental. Maintenance of property. Property inspections according to legislation. Liaison with landlord. Electricity connection documentation. Other administrative services where necessary. 11 RE/MAX Midlands Online

12 RE/MAX Assistance for Landlords RE/MAX Assistance for Landlords Do you have a property that we can rent on your behalf to selected a tenant? We understand that you, the owner of the property, will at all times make the ultimate decisions regarding tenant selection, lease terms and maintenance. These are responsibilities that come with property ownership. On the other hand we undertake to keep you informed on rental trends, to act on your instructions with regard to any of the above and to attend to all matters relating to the agents obligations. As part of our service, and in accordance with government legislation, we assist landlords in the following ways: Rental valuation of your property. Location of suitable tenant. Lease negotiation and completion including revenue stamps. Property inspections according to legislation. Collecting and retaining a deposit. Collection of monthly rental. Disbursement of rental monies advice. Maintenance of property. Liaison with tenant. Other administrative services where necessary. 12 RE/MAX Midlands Online

13 Why Should You Use RE/MAX Assistance in Renting? Why RE/MAX Assistance in Renting? For peace of mind... Whether you are a landlord or tenant, you will benefit from our wide range of quality choices and supportive services. Our databases of available homes to let and prospective tenants are extensive. Also, we network with other agencies in the area. A few hundred lease agreements are signed every month thanks to RE/MAX. We save you time, money and all possible problems when it comes to rental. The table below lists benefits of our assistance for landlords and tenants: RE/MAX Rental Service Rental value advised by us is the highest that the market can bear Constant advertising: press, Internet, Property Network Professional inspections by a trained real estate agent prior to Lease Agreement Benefits for Landlords Find tenant quicker and avoid underpricing Find tenant quicker and save time and money on private advertising Be aware of property's condition; make repairs to find tenant quicker and to increase rental value; save time on inspections Benefits for Tenants Avoid over-payments poor quality homes for Save time on hunting for a home and find a suitable landlord quicker Rent a place in perfect condition and avoid expenses on repairs; inspect property at the most suitable time for you Continue RE/MAX Midlands Online

14 Why Should You Use RE/MAX Assistance in Renting? RE/MAX Rental Service Rental negotiations by a trained real estate professional Completion of Lease Agreement by a trained real estate professional Deposit and monthly payments collection Constant supervision over maintenance, repairs and alterations Completion of electricity connection documentation prior and after occupation Assistance or advice in all possible problems experienced during tenancy: break-ins, security, lost keys, insurance etc. Benefits for Landlords Better marketing for your property; adjust rental payments if necessary to find tenants quicker; save time on negotiations Save time and avoid mistakes when preparing Lease Agreement Receive payments on time; save time on collections Be aware of property's condition or alterations requested by tenants; make repairs on time to secure tenancy and maintain rental value Avoid outstanding municipal bills on your property Avoid being asked questions that we can answer; be sure of your property's security and immediate attendance to all problems; be aware of all problems Benefits for Tenants Be comfortable voicing any concerns; save time on negotiations and secure a place to stay quicker; secure the highest quality place for your money Understand all clauses in the Agreement and save time on paperwork Pay on time to avoid unpleasantness; secure deposit in an interest bearing trust account Report problems instantly; be aware of your responsibilities and avoid expenses for repairs that you are not liable for; avoid unpleasantness by making unwelcome alterations Save time on paperwork; avoid outstanding fees after lease expires Find answers to your problems instantly; feel supported when problems occur; fix problems or find solutions quicker; save time on informing landlord Continue RE/MAX Midlands Online

15 Why Should You Use RE/MAX Assistance in Renting? RE/MAX Rental Service Assistance before lease expires: inspection by a real estate professional, final documentation, other advice Advice on rental payments increases according to market analysis Benefits for Landlords Secure new tenants before lease expires; find property in perfect condition for new tenant; avoid expenses that can be covered by deposit; avoid outstanding bills on property; save time on paperwork Avoid losing tenants by unreasonable increases in payments; avoid under- payments Benefits for Tenants Be aware of lease expiration time and renew it before it expires; settle all bills to avoid unpleasantness; save time on paperwork; be aware of necessary repairs that should be covered by deposit (if applicable) Save money on unreasonable increases in rental payments; be informed about increases before they come M I D L A N D S RE/MAX Midlands Rental Department 196 Chapel Street, Pietermaritzburg 3200 P.O. Box 1182, Pietermaritzburg 3200 South Africa Phone: (intl: ) Fax: (intl: ) Web: 15 RE/MAX Midlands Online

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