New Year Lease Check: What Landlords and Tenants Should Review Before Renewing
Why annual lease reviews matter
A lease is not a once off document. Laws change, utilities change and properties age. When the lease falls behind, conflict follows. A yearly check keeps the agreement accurate and reduces avoidable disputes.
Key checks for landlords
Landlords often update their leases only after something goes wrong. A proactive approach saves time and limits legal exposure. It also helps retain reliable tenants, which is more cost effective than vacancy.
Market aligned escalation rates – Escalation must reflect local rental trends. CPI growth eased in 2024 and several metros recorded modest increases. Out of line escalations drive away good tenants. Adjustments should match comparable listings in the suburb.
Tariffs and utility billing – Utility clauses must be specific. The lease should confirm prepaid electricity or water, split billing, and which municipal charges the tenant is responsible for. This reduces billing disputes.
New technology and upgrades – Solar, inverters, batteries, fibre and prepaid water systems need written terms. These include access rules, maintenance responsibilities and the impact on rent. Tenants expect clarity on what the system covers.
Maintenance responsibilities – This remains a major source of conflict. The Rental Housing Act requires clear definitions. Landlords handle structural items. Tenants handle daily upkeep. Without detail, wear and tear disputes are common.
Legal compliance – Leases must comply with the Rental Housing Act, Consumer Protection Act and POPIA. Templates older than a year often miss disclosure requirements or updated cancellation terms. A brief legal check is worthwhile.
Inspections – A complete ingoing and outgoing inspection with date stamped photographs protects both sides. Many tribunal cases fail because the evidence is weak or incomplete.
Communication with tenants – Raise any lease updates early. Tenants are more supportive when the process is transparent. This improves retention and reduces negotiation pressure.
Key checks for tenants
Tenants often sign renewals under pressure. But the lease protects them against unfair deductions, sudden notices and unexpected fees. A short review is in their best interest.
Escalation, deposits and fees – Check the escalation, the new rent and the deposit. Deposits may only increase when rent increases. All fees must be lawful and disclosed.
Utility billing – Understand how consumption is billed. Prepaid, split billing or full municipal accounts each carry different responsibilities.
Notice periods – The Consumer Protection Act allows tenants to give 20 business days’ notice on fixed term or periodic leases, subject to a reasonable cancellation fee. This needs to be checked before signing.
Maintenance terms – Check who pays for minor repairs. Many tenants end up paying for items they are not responsible for because the clause is unclear.
Inspection evidence – Ensure the ingoing inspection reflects the unit’s real condition. This avoids disputes at the end of the lease.
New property features – Any fibre, solar, gas or backup power system must be captured in writing. Check access rules and repair responsibilities.
Ask for clarity – Good landlords welcome questions. A clean payment record also gives tenants more room to negotiate terms. If you are unsure about repair duties, ask the landlord or agent to explain the maintenance clause before signing.
Comparison table: Landlord vs Tenant responsibilities
This table provides a simple overview. Each lease may vary, so these points should be confirmed in writing.
Topic Landlord responsibility Tenant responsibility
Structural repairs Roof, walls, plumbing faults, wiring faults Report issues early
Wear and tear items Replace only when fair wear and tear applies None
Damage caused by user None Repair or pay for damage caused by negligence
Utilities Ensure accurate billing method is installed Pay for usage as per lease
Solar or backup systems Maintain system unless tenant caused damage Use system correctly and report faults
Fibre or network points Provide access for installation if agreed Pay for monthly subscription
Inspections Conduct ingoing and outgoing inspections Be present and ensure records are accurate
Notice periods Issue a breach notice and terminate only if the tenant fails to remedy the breach Give 20 business days’ notice as per the Consumer Protection Act when cancelling early
Deposits Hold deposit in an interest bearing account Pay deposit and keep the unit in good order
A stronger lease makes for a smoother rental year
A clear and current lease removes stress in January. It simplifies admin, reduces conflict and protects the property. Most rental disputes could be avoided with a yearly update and proper inspections. A few hours spent on the agreement now saves months of frustration later.
Legal notes for landlords and tenants
A well drafted lease sets rights and obligations, creates a dispute resolution framework, protects financial interests and ensures long term maintenance of the property. Where leases involve higher value homes or unique circumstances, a yearly legal review is recommended.
Frequently Asked Questions
What is the minimum legal requirement for a lease in South Africa?
A residential lease must comply with the Rental Housing Act. It must be in writing if requested by either party and must outline rent, deposit, use of the property, inspections and responsibilities for repairs.
Can a landlord increase the rent at renewal without negotiation?
Yes, but the increase should be reasonable and market aligned. Tenants can negotiate if the escalation is higher than comparable rentals in the area.
How often should a lease be reviewed?
A yearly review is recommended. Laws, tariffs and property features change over time and outdated leases are a common cause of disputes.
Can a tenant cancel a fixed term lease early?
Yes. Under the Consumer Protection Act, a tenant can cancel with 20 business days’ notice. A reasonable cancellation fee may apply.
Who is responsible for repairs during the lease?
Landlords handle structural and fair wear and tear repairs. Tenants handle minor consumables and any damage they cause. The lease must explain the split clearly.
Are ingoing and outgoing inspections compulsory?
Yes. They are required under the Rental Housing Act. Without these inspections, landlords struggle to justify deposit deductions and tenants struggle to challenge them.
Does a lease need to mention solar, fibre or new technology?
Yes. Any feature that affects cost, access or maintenance must be captured in writing. This prevents misunderstandings later.
In closing
A lease only works when it reflects the real state of the property and the law that governs it. A short review each year keeps both sides protected and prevents small issues from turning into disputes. When the terms are clear, inspections are done properly and communication is open, the rental relationship runs smoother for everyone. It also strengthens the value of the property and gives tenants a more stable home. A careful renewal now sets the tone for a better year ahead.
Immo Africa