|
Dear Rental Agents
I have good news and not so good news! The good news is that the Assessment & Training Centre for Estate Agents has introduced an arbitration service for rental agents as from October 2011. Two highly experienced rental persons with many years behind them, one an attorney, will be available to arbitrate on certain matters concerning residential and commercial rentals. Each case will be investigated and a decision made within a month, provided that both parties agree in advance to adhere to the decision. There will be a cost involved. If you are interested or want more details please contact Debbie via email on
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Now for the not so good news! There have been so many cases in the Rental Tribunal within the past few months which have reflected poorly on rental agents, particularly when it comes to refund of deposits. The average rental agent is not conducting proper ingoing recorded inspections as prescribed by the Rental Housing Act, and many agents who are undertaking the inspections are charging high fees to do this. The inspections are statutory which means that because they are legally laid down in terms of the Rental Housing Act, the tenant cannot be charged for them. There is no way whatsoever that you, as rental managers, can charge the tenant for everything that concerns management, and pocket the commission without deducting the cost of the services of this management. If necessary increase the amount of commission charged to incorporate whatever needs to be done.
In these times of recession, residential and commercial property management (or sectional title management) is the only viable way to remain in the real estate industry, keeping in mind that it will never pay commissions comparable to those which are paid for selling property. However in order to be sought - after for a good and knowledgeable service you must develop a good reputation for dealing with both landlords and tenants in an excellent manner. Whilst business is about making money, today there is a strong emphasis on integrity and honesty in the real estate industry. Attend whatever seminars and training you can to improve your skills and enhance your business.
Lessons learned from recent cases: Refund of deposits where a business has gone into liquidation: Note that the Trust Account of a real estate business is not part of the business because the money in the Trust Account does not belong to the business. When a tenant applies for his deposit which is being held in a Trust Account it must always be available because of this fact. An owner of a property must realize that a deposit must be refunded to the tenant even if the agent did not hand over the amount to the landlord. Any conflict between a landlord and an agent has nothing to do with the tenant who must be refunded his deposit plus interest if and when it becomes due. A tenant is within his rights to lodge a case of theft at a police station should his deposit not be refunded if the excuse is that the business has been liquidated and the Trust fund is empty.
Many agents tell me that they are instructed by their principals to retain deposits, fully knowing that it is illegal. In those instances I would inform the tenant of his/her rights so that they can go ahead and do what is necessary.
Extension of lease with the CPA in place: Keep in mind that the Consumer Protection Act does not apply to leases signed before 1 April 2011. If tenants in existing leases as at 1 April think that they have rights to terminate their leases in 20 days, please inform them that this is incorrect. That said, it remains a problem once a tenant wants to or has to leave because of his financial circumstances. There will be a penalty which must be reasonable and this must be stated in the lease agreement. In most instances the tenant is held responsible until a new tenant is found. Beware of sub tenants - it is better to cancel the existing lease and enter into a new one with the new tenant.
Non payment of rent: Once again, as a result of the uncertain financial climate, many tenants are not paying rent. Leaving a tenant in a property when the rent and services are not being paid is totally unacceptable. Cases where tenants have not paid for anything from 6 – 12 months have come to the attention of the Rental Tribunal, and our first question is why was it left for so long? If a tenant does not pay rent on due date you, as the landlord, must immediately take steps to recover the rent and activate the conditions of the lease agreement as soon as possible. In terms of the Rental Housing Act at least one month’s notice or one month’s calendar month (dependent on the lease agreement) must be given. It has been noted that few landlords/agents attend a hearing with the necessary documents proving what they have done to get a tenant to pay rent or to evict a tenant. The Rental Tribunal is not a debt collector and will not do the necessary work that a landlord/agent should have carried out in terms of the lease agreement. Remember my famous paper trail!
Termination of advisory service:
Unfortunately I no longer will be able to advise you by email. I have been forced to terminate this service due to the huge amount of emails received on a daily basis with which I no longer can cope. Please either call the Rental Housing Tribunal or a competent attorney in future. If it is a case that requires arbitration email Debbie who will send you the necessary forms.
Remember to visit our website www.assesscent.co.za
Best of luck for the next couple of months
There will be a Christmas edition of RentNews with tips for holiday letting.
Yours in rentals.
Training details:
RESIDENTIAL RENTALS COURSE
Date: 7& 8 November 2011 (Cape Town), 15 & 16 November 2011 (Gauteng)
Time: 9am – 2pm
Venue: to be advised
Cost: R1000
Course Content:
- Rental Act / Unfair Prac. Regs / CPA / other Legislation
- Landlord / Management Agreements
- Advertising / Marketing
- Tenant aspects; screening; applications; problems etc
- Costs / Deposits / Increases / Late payments / fees etc
- Inspections / Inventory
- Rights of Landlord
- Repairs and Maintenance
- Eviction procedures / Ejectment / spoliation
- Attachment orders / Granting of interdicts etc
- Change of ownership and more....
COMMERCIAL & INDUSTRIAL LETTING COURSE:
Date: 22 & 23 November 2011
Time: 9am – 4pm
Venue: Pinelands
Cost: R1 200
Trainer: Don Clark
Course Content:
- Canvassing / Tenant enquiries
- Communication & Presentation
- Lease Concepts
- Planning and Motivation / Negotiation
- Landlord and Tenants
- Reading and adapting to the market
- Data Base Management
- Networking and more ...
|
