Are you considering buying property with the purpose of lease? Have you considered bank repo property? So many available bank repo properties on the bank repo lists exist from FNB, Standard bank, ABSA etc. will get anyone’s imagination overwhelmed with possibilities. This idea of buying bank repo and leasing has been a good idea for some time; however there are some factors that are not taken into account.
Residential property landlords should be aware that they need to draw up leases and deal with their tenants in terms of the National Rental Housing Act. The aim of the Rental Housing Act is to facilitate a fair deal for both the landlords as well as their tenants. Unfair practices between landlords and tenants are eliminated by the Rental Housing Tribunal’s function, so it interprets this act and the regulations in its negotiations.
The Unfair Practices Regulations consists of thorough detailed regulations. We will only summaries a couple of these. Go and have a look at the document over at the address http://ftp.shf.org.za/draft_reg.pdf
Locks of a property may not be changed unless it is necessary due to fair wear and tear, without reasonable notice being given to the other party and new duplicate keys being provided to both parties. The condition of a property at the onset of a lease must be reasonably fit for the purpose for which it is let.
A landlord must maintain a property in terms of all provincial ordinances, health and safety regulations or any other relevant law.
The landlord must provide all services to a property as agreed to in the lease. The landlord must effect repairs for which the landlord is responsible not later than 30 days after due notice. A further period may be agreed upon between the landlord and tenant if it is deemed necessary in the circumstances.
When it comes to reconstruction, refurbishment, conversion and demolition, a landlord may request only that a tenant vacate a property if the contemplated repairs cannot be undertaken while a tenant is living on the premises.
A landlord may cancel a lease only if the property becomes derelict and cannot be inhabited.
While a landlord is repairing a property, the tenant must be given a remission in rent to compensate for the inconvenience caused. If the tenant remains on the property while repairs are being effected, the tenant must receive a remission of rent for inconvenience caused. A landlord must undertake necessary repairs as soon as possible so that the tenant is not inconvenienced. A landlord must ensure that the tenant can return to the property as soon as the repairs are completed.
A landlord may not enter leased property without giving a tenant reasonable notice and then only to inspect the property; to make repairs to the property; to show the property to a prospective tenant, buyer, mortgagee or its agent; or if the property has been abandoned or having obtained a court order.
Municipal services must be provided in terms of the lease and the landlord may not charge a tenant more than the exact cost of services consumed on the property if there is a separate meter. A landlord must not fail to comply with any regulation or by-law regarding the amount to be charged to the tenant if the property is not separately metered.
A landlord is not permitted to turn off utilities to the rented premises or property. It has become a criminal offence to cut off electricity or water regardless of whether the account has been paid or not. A landlord may terminate services only if there is an emergency, or to do maintenance or repairs after reasonable notice has been given to the tenant.
The list goes on. Be sure to take a decent look at it before you start leasing property, whether its bank repo recently bought or private property of your own. Bank repo will be a good starting point when you have the idea, but not yet the property in hand. Browse the repo list of FNB for great looking Bank repo property which are ready for leas. Good luck.
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