Moving out of your parents’ home or varsity digs and securing your first rental property is one of the most exciting events for young professionals.
To ensure you are well prepared to secure a suitable property and to know your rights and obligations, Seeff’s rental agents have prepared a few guidelines.
Assessing your financial status and affordability
Knowing what you need to qualify for a rental is the first step. Before an agent or landlord hands over a lease, they need to assess your financial status to ensure you can afford the rental and have a secure income and good track record. Most agencies require a gross monthly income which is at least three times the monthly rent.
Your monthly income must also be secure, and proven. This will form part of the standard "application pack” that you need. This includes a certified copy of your ID or passport, your three most recent payslips (or six months of bank statements if you are self-employed), and proof of address. The agent will also need to perform a credit check. A score over 610 is generally the baseline for approval.
Deposit, upfront rent and costs
Next up, you need to ensure you have funds ready for a deposit and first month’s rent and costs which are paid in advance before occupation. Costs include the credit check and lease preparation. The deposit is usually equivalent to one to two months' rent. By law (the Rental Housing Act), this must be held in an interest-bearing account for your benefit. The deposit, first month’s rent, and all costs are due before you can take occupation.
Taking occupation and what you need to know
Securing the property is only the beginning. Maintaining a "good tenant" status is vital for your future credit score and track record. One of the first things that needs to be done is an incoming inspection of the property with the agent or landlord. This must be done in writing. You and the agent or landlord must walk through the property together and document every scratch, chip, or leak in writing. Take photos and even a video if necessary. This document is vital for the exit inspection which will happen at the end of your lease, as it will determine whether you owe anything for damage that may be deducted from your deposit.
Financial diligence and due care
A positive payment record is vital. The rent must be paid by the first of the month without exception, and you cannot deduct anything from the rent either. There will usually be additional costs that you must pay such as electricity, water and other usage. This will be set out in your lease agreement. Any issues must be raised with the agent or landlord.
Late payments are a breach of contract and can be flagged on credit bureaus, thus affecting your credit record. This includes utility payments (water, electricity, refuse) which must be paid when due. If there is a prepaid meter, you will need to ensure you purchase voucher timeously for the meter. Non-payment of municipal services can result in a cutoff by the municipality, and reconnection fees are an expensive, avoidable headache.
Maintenance and upkeep of the property
You are responsible for the "day-to-day" upkeep of the property including replacing lightbulbs or keeping the garden tidy. The landlord is, however, responsible for structural issues such as a burst geyser or a leaking roof. You must notify the agent or landlord immediately in the event of any issues. Small leaks can become massive insurance claims if left unreported, and you do not want to be held liable for negligence.
Conditions of the lease
It is critical that you understand the conditions of the lease, your obligations therein, and any restrictions it may contain. Important aspects could include how many people may occupy the property, and the fact that you cannot sublet without the landlord's prior approval, failing which, it will be a breach of the lease. Similarly, you may not alter the property or affix anything without permission, and the property must be restored to the condition it was in upon occupation.
Complex rules and regulations
You should be provided with a copy of the applicable complex rules and regulations which must be attached to your lease agreement. All tenants are bound by the respective Conduct Rules.
These rules usually regulate aspects such as noise levels and respecting "quiet hours" (for example, after 10:00pm and no early morning noise over weekends). It would also include the use of common property such as parks, play areas, and amenities as well as visitor parking and access. Parking is usually allocated and tenants and visitors may only park in the designated bays.
Liaise with the agent or landlord on any issues
By treating the property with respect and staying transparent with your agent or landlord, you ensure that your rental experience is a stepping stone to a great credit history, and a full refund of your deposit.
