Lease renewal - Extra deposit wanted

HunterGR

HunterGR

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I have been renting a house in the CPT northern suburbs for two years now, the lease is up for renewal and the new agent is asking for an additional deposit along with the raised rental amount.

There are a few things that need to be repaired on the house due to inferior materials used when it was built (the house is 9 years old) and then was extended by the owner. We made a list with the agent and he said he would contact the owner and discuss this. All this happened in April.

This morning i got an email from him asking me for the second deposit (the lease expires at the end of this month) and i replied asking on when the repairs would take place - especially on the one door that needs to be replaced.

I got a reply saying that the repiars would only take place once he had recieved the top-up deposit as he called it.


My question is this:

Why ask for a second deposit now? is he (the agent) trying to take me for a ride?
 
Nope it does happen rent goes up deposit goes up, hell my water and electricity deposit also was put up when the rent went up.
 
he is asking for an additional R7300 deposit (R400 to top up the existing one plus one more month)
 
Wow that is just crazy, you should look into the original contact you signed and whether is states that they can increase the initial deposit amount.

If nothing is stated then **** that, also make sure it's not included in the new contract, if you haven't signed it already.
 
i actually think that the owner does not have the money to fix the problems and hence the second deposit which as far as i know should be held in a interest bearing trust account (the deposit that is)
 
It is normal for the deposit to be topped up proportionate to the rental increase i.e. if your rent goes up 10% then so does the deposit.

However asking an additional month is changing the terms of the lease and that is a whole different story. I'd tell the agent and landlord to get stuffed.
 
How much was the original deposit ? What is current and increased rental amount ?
 
HunterGR said:
i actually think that the owner does not have the money to fix the problems and hence the second deposit which as far as i know should be held in a interest bearing trust account (the deposit that is)
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That is correct, the interest bearing account part, which is money you should get back + interest earned when you move out, minus whatever "damages/repairs" they claim against you.

I guess if you have the money you can just pay it, however they asking for a bit much imo
 
thehuman said:
How much was the original deposit ? What is current and increased rental amount ?
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The original deposit paid to the previous agent (seems she was a fly by night type) was R6500, the rental was R6500 and has now gone up to R6900, the new guy is asking for R6900 extra deposit and R400 to top up the original one

Purply said:
I guess if you have the money you can just pay it, however they asking for a bit much imo
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i don't have it..
 
AlmightyBender said:
It is normal for the deposit to be topped up proportionate to the rental increase i.e. if your rent goes up 10% then so does the deposit.

However asking an additional month is changing the terms of the lease and that is a whole different story. I'd tell the agent and landlord to get stuffed.
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it's included in the new lease, not in the original one
 
So he want double deposit now
This is one place where being a member of legal aid would help
 
It's not unlawful, plenty people doing it, heck I've even done it, it's just to protect the owner.

I'd suggest working out a payment plan with the estate agent as they cannot expect you the pay that kind of money in one go.

If you really feel strongly about the entire matter, just say you cannot afford it and let them come up with a workable alternative.
 
With the introduction of the CPA it is no longer legal to top up the deposit with rental increases. My leasing agent told me this when I was upstanding my lease to comply with the CPA
 
well, the orginal contract is coming to an end so with the new contract, all the terms can be re-written. it's up to the OP to decide if he wants to stay there or not. Purply has some sound advice though.

furthermore, Hunter, you have been lucky on the deposit. it seems most places in Cape Town want a more than 1 months rent for deposit. I had to pay 1 month, plus 50% of another month.

and back in Durban, very few places wanted a top up on the annual increase, so I guess I know what to expect next year
 
Thanks to all for your comments. i have no plans to move, i can't as i have an 11 year old in school here, so i am in it for the long run. the thing that gets me though is that the repairs wont be done until the deposit is paid....

That is what is pissing me off.
 
Have you always paid on time?

What notice period is specified in the lease? Has the agent complied with that?
 
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