Episode 2 | Property Perspective with Etchells & Young
Whether you are renting out a property or moving into one as a tenant, understanding what should happen before, during and at the end of a lease can help prevent disputes later.
In Episode 2 of Property Perspective on 919, Harry talks through rental deposits, lease agreements, entry and exit inspections, fair wear and tear, maintenance responsibilities and why proper tenant screening is so important.
In This Episode
Harry takes listeners through some of the practical steps involved in starting and managing a residential tenancy.
Harry discusses:
Why a written lease agreement is so important
What happens to a tenant's rental deposit
How interest on a deposit is handled
Why joint entry inspections matter
Recording defects when a tenant moves in
The difference between fair wear and tear and tenant damage
Landlord and tenant maintenance responsibilities
Why thorough tenant screening offers landlords valuable protection
Watch Episode 2
Property Perspective airs weekly on 919.
Before a Tenant Moves In
The rental process normally starts with an application and tenant screening, followed by the lease agreement and payment of the required deposit and first month's rental.
Harry explains why having the terms of the tenancy properly recorded can protect both parties. Even where an agreement has been made verbally, proving what was originally agreed can become difficult if a dispute arises later.
Keeping the lease, proof of payments and other important records can therefore make a significant difference.
What Happens to Your Rental Deposit?
The episode also looks at what happens after a tenant pays a deposit.
Harry explains that the way a deposit is handled can differ depending on whether the property is professionally managed or whether the deposit is ultimately held by the landlord.
He also discusses interest earned on the deposit and why tenants should keep clear records of what they have paid throughout the tenancy.
Why the Entry Inspection Matters
One of the most important steps discussed in the episode is the joint entry inspection.
The purpose is to record the condition of the property before the tenant takes occupation. Existing marks, damage or defects can then be identified so that both landlord and tenant have a clear record of what was already present.
Harry also explains that some issues only become apparent once a tenant has actually started living in the property. For this reason, a lease may give tenants an additional period in which to report problems discovered shortly after moving in.
Fair Wear and Tear vs Damage
Not everything that deteriorates during a tenancy is necessarily damage caused by the tenant.
Harry uses examples such as carpets becoming worn through ordinary use and paint or curtains fading because of sunlight to explain the principle of fair wear and tear.
The entry and exit inspections help establish what has changed during the tenancy and whether a new issue is normal deterioration or something that requires further investigation.
Who Is Responsible for Maintenance?
Maintenance responsibilities are another common source of confusion.
In the episode, Harry distinguishes between major elements of the property, such as its structure, plumbing and electrical systems, and the everyday care and upkeep expected while a tenant is living there.
The lease agreement plays an important role in setting out these responsibilities clearly so that both parties understand what is expected of them.
A Key Takeaway
"The best insurance that any landlord can have is to screen tenants properly."
Harry's message is that prevention starts before a tenant moves in. Thorough screening, a proper lease agreement, clear records and detailed inspections can dramatically reduce the potential for misunderstandings and disputes later in the tenancy.
What Is Property Perspective?
Property Perspective is Etchells & Young's weekly property segment on 919.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Renting Out Your Property?
From finding and screening a suitable tenant to lease administration, inspections, rent collection and ongoing property management, the details matter.
Speak to Etchells & Young about professional tenant placement and rental management for your investment property.
