Lease cancelation fees

[lieutenantdan]

Just got a lease agreement sent my way by a potential landlord. Everything seems reasonable except for the cancelation terms in the image attached. I'm not an expert at housing rules and laws but this seems draconian to me. Is this even legal? Has anyone come across an agreement of this nature? Did the landlord perhaps think that I wasn't going to go through the document?

 

[Tman*]

How do you even enforce that?

Walk away

 

[lieutenantdan]

How do you even enforce that?

Walk away

Right? In all the places I've been, you'll forfeit your deposit if you cancel the lease prematurely. This is my first time seeing this.

 

[3WA]

I lost two month's rent when my tenant absconded so seems realistic (in terms of covering expenses) from landlord's side. Don't like it? Find another place.

 

[lieutenantdan]

I lost two month's rent when my tenant absconded so seems realistic (in terms of covering expenses) from landlord's side. Don't like it? Find another place.

I understand that it seems realistic to you as you're looking at it through a landlord's glasses but this sounds excessive to me. And yeah, I won't sign such an agreement. Thank you.

 

[zerocool2009]

Find a better landlord who aint chasing money!

 

[richjdavies]

I think this is how it works nowadays. You aren't allowed to have more notice than stipulated in the CPA (30 working days), and landlords are not legally allowed to keep any deposit money apart from for damages.

So in short, this is how they are doing business now to still punish people for leaving annual contracts after a couple of months.

 

[Sensorei]

Definitely find another place to rent.

 

[RonSwanson]

Unlawful contract. Request an amended contract that is in line with the CPA and RHT act.

 

[rvZA]

Agreed.

This is illegal and you could lay a complaint and have the landlord prosecuted.

The act is clear on three specific things applicable here:

1. Cancellation penalties may not be prohibitive in a manner that would force the consumer not to cancel, which is clearly the case here.

2. Cancellation fees must be reasonable. The landlord cannot claim 3 months rent and other expenses, with the exception of actual damages caused by you, which must be shown on both inspection reports when you moved in and out. If there are no inspection reports or one is missing, he has no claims for damages. This was already made clear in a number of RHT cases. At most, the landlord has 20 days to find a new tenant and could claim any advertising costs he had in finding one. If he can't find tenants in 20 days, you are not responsible for any losses.

3. No person is allowed to draw up a contract that bypasses the CPA act, which is clearly the case here.

 

[rvZA]

Right? In all the places I've been, you'll forfeit your deposit if you cancel the lease prematurely. This is my first time seeing this.

No. Your deposit can not be forfeited when you cancel the lease early. They may, however, use your deposit to fix the premises where you caused damage, which was clear from the two inspection reports. If there were no inspection reports or one is missing, the landlord have no claim for damages.

Other than that, they have to refund your deposit, which should have been placed, according to law, in an interest bearing account along with the interest earned.

If they fail to do this, you report them after 14 days to the RHT and let a court deal with them.

 

[lieutenantdan]

I lost two month's rent when my tenant absconded so seems realistic (in terms of covering expenses) from landlord's side. Don't like it? Find another place.

Your argument is more emotional than factual. One month should be enough to find a new tenant.

 

[rvZA]

Your argument is more emotional than factual. One month should be enough to find a new tenant.

As a tenant you are right. But, you need to look at it from a landlord's point of view too. Finding a tenant in 20 days is no problem, but finding the right tenant is a huge problem. South African laws have changed tremendously against individuals wanting to make a living from property investments, in fact, so much so that properties can no longer be seen as an investment, unless you buy it for yourself to live in. Renting out properties in South Africa is a huge risk, it is setting one up for massive financial failure.

 

[3WA]

Your argument is more emotional than factual. One month should be enough to find a new tenant.

There’s nothing emotional about it. It’s a contract. Don’t like the terms? Be non-emotional and find another place.

I could carry the loss when it happened to me, no biggie. What if your prospective landlord can’t? Why should they lose money because you can’t stick to a contract that you voluntarily entered?

 

[RonSwanson]

Your argument is more emotional than factual. One month should be enough to find a new tenant.

Which part of it was emotional?

One month isn't enough, because the ad needs to run, prospective tenants screened, viewing arranged, tenant selection, then contract negotiation, contract signing and payment of deposit, at which point the new tenant will have to give reasonable notice at their current digs. This is over and above the repair of damage to the unit caused by the previous tenant wife-beater and cleanup of all the dirt and filth that the previous tenant vuilgat used to live in and that he left behind.

 

[airborne]

Just got a lease agreement sent my way by a potential landlord. Everything seems reasonable except for the cancelation terms in the image attached. I'm not an expert at housing rules and laws but this seems draconian to me. Is this even legal? Has anyone come across an agreement of this nature? Did the landlord perhaps think that I wasn't going to go through the document?

It is illegal to charge cancellation fees but I can guarantee if you bring that up the landlord will tell you to take a hike.

 

[RedViking]

Just got a lease agreement sent my way by a potential landlord. Everything seems reasonable except for the cancelation terms in the image attached. I'm not an expert at housing rules and laws but this seems draconian to me. Is this even legal? Has anyone come across an agreement of this nature? Did the landlord perhaps think that I wasn't going to go through the document?

They smoking dagga. I WILL NOT SIGN THAT.