Assessment & Traning Centre

With the slow down in the property selling market, increase in interest rates and the prices of property yielding far less than those of twelve months ago, renting has become a more attractive option for some and an essential for others.   Some home owners have had to sell their properties or have had them repossessed and have found themselves in the situation of becoming tenants

Many owners of residential property are those who invested in rental property during the recent property boom and believed that the skyrocketing real estate prices would realize fine profits once the property had been rented out for a time.   This was indeed a model for success only to be nipped in the bud by the National Credit Act.
These are the landlords who are now coming to terms with the fact that the Rental Housing Act governs them and the tenants to whom they have rented their properties.

The Rental Housing Act has been in operation since the year 2000 and unlike the previous rental act, is an act geared strongly towards the rights of tenants and is most specific about how landlords treat their tenants.   One of the most important advantages a prospective tenant can bring to a rental is a clean bill of financial health as landlords need to know that a prospective tenant can afford to rent and will be a good payer during the period of his tenancy.   Because of the problem of non payment of rent, landlords today demand high deposits, services deposits and other amounts to be paid before tenancy to cover themselves for rent and other costs that are often not paid.   The new amendments to the Act disallows a landlord to terminate services regardless of whether electricity or water has not been paid and a landlord can find himself accused of having committed a criminal offence.   An order of court has to be obtained before this can be executed.

A landlord can discontinue an agreement of lease in cases when tenants fail to pay their monthly rental, but must also approach a court of law for an eviction order in cases where tenants refuse to move.   This creates financial problems for landlords as dates in the courts can only be obtained in anything from three to six months and during that time tenants often remain in the property without paying.  The selection of tenants is therefore of prime importance and every landlord should learn how to carefully select tenants whereby both parties are able to establish an honest and constructive relationship.   This can only come about if each side is aware of their legal obligations and the implications of the Rental Housing Act.


Tenants should be aware of the conditions of their lease agreement, to know that the deposit they pay must be held in an interest bearing account for their benefit and that the incoming and outgoing inspections in terms of the Act must be carried out as they affect the repayment of the deposit.   The cost of a lease agreement must be transparent in that a landlord must reveal how he reached the amount charged, and the tenant has recourse to the Rental Housing Tribunal if the amount is too high or does not relate to exact costs.  

The Rental Housing Tribunal was established by the government (there are tribunals in all the main cities) to facilitate and arbitrate a fair deal for both landlords and tenants.   The service is free, there is telephonic help for problems and when those problems cannot be solved by facilitation, the case is referred to the Tribunal where the members hold a hearing and give a ruling.   This ruling is equivalent to that of a magistrate’s court and is binding in legal terms.

Rental agents, landlords and tenants are urged to learn about their rights and to  become familiar with good methods of successfully renting residential property.

My background is that I was involved with the renting of property for many years in a business which specialized in rentals.   From the time that I was with the Institute of Estate Agents I specialized in rental advice for member agents, lectured in rentals as well being a member of the Rental Housing Tribunal for the past four years.  The latter has given me the experience to guide those involved according to case law and legal interpretation of the Rental Housing Act.

Currently I lecture in rentals for estate agents and landlords mainly on the act and what it means, so that the related problems being experienced in the community may lessen if both sides understand exactly what is expected of them.  

For information on our training course and seminars, please email Debbie Knipe on This e-mail address is being protected from spambots. You need JavaScript enabled to view it or if you have rental queries, email them to me, Vivien Marks on This e-mail address is being protected from spambots. You need JavaScript enabled to view it



Written By:  Vivien Marks – Assessment Centre for Estate Agents