A large proportion of rental disputes that appear before the Rental Housing Tribunal arise from disputes regarding the handling and returning of a tenant’s deposit and the interest that has accrued on that deposit.
The deposit must be held in an interest bearing account
The 2008 amended Rental Housing Act states that interest on
a deposit must be held in an interest bearing account equivalent to a savings
account with a financial institution which interest will be for the benefit of
the tenant.
Avoid this mistake!
One of the biggest mistakes landlords and agents make is
using the deposit during the course of a lease agreement to set it off against
arrear rental.
Reserve the deposit for physical damages
This allows the deposit to be reserved for the fixing of
physical damages once the tenant has vacated the property giving the landlord
the option of loading a default listing for the arrear rental rather than
having to undertake the task of taking legal action for damages through the
courts.
The Rental Housing Act has specifically legislated the
procedure for the handling of deposits and the importance of adhering to it
cannot be stressed enough! The procedure can work together with the
default listing process under the National Credit Act to create a streamlined
course of action that fully protects the landlord from a delinquent tenant that
has not paid and who has caused damage to the property during the
term of the lease agreement.
To see Michelle’s full interview with the SABC, click here
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