Page 8 - The Ultimate Lanlord Guide_Neat

BE AWARE: the rights and duties of the landlord and tenant (as per RHA and CPA) apply
to the landlord and tenant, even if a lease agreement has not been reduced to writing.

ALSO: If the landlord does not sign and deliver to the tenant the written lease
agreement, signed and delivered to the landlord by the tenant, acceptance of rent by
the landlord gives the lease agreement that same effect as if it had been signed and
delivered by the landlord.

If a tenant does not sign and deliver to the landlord the written lease agreement, signed
and delivered by the landlord, acceptance of possession of the property and payment

of rent gives the lease agreement the same effect as if it had been signed and delivered
by the tenant.

Hopefully you never need to refer to the lease again, but it is worth doing it properly
and correctly – just in case.

THE DEPOSIT

Ok, time for action, your new tenant is ready to pay you.
The Rental Housing Act regulates the treatment of the deposit. Firstly bear in mind that
the deposit belongs to the tenant up to the point that the tenant owes you any money in
terms of the lease. The landlord determines the size of the deposit. An acceptable

industry standard is a deposit of one months’ rent for an unfurnished property and two
months’ rent for a furnished property. The deposit can be increased to offset any other
risk that the landlord deems likely. Just don’t limit your chances of renting your property
by unreasonably expecting a large deposit.

The deposit must be invested in an

interest earning bank account and all
interest earned belong to the tenant.
The tenant may at any time during the
lease request that the landlord provide
written proof of the deposit invested and
the interest earned thereon, and the
landlord must provide such proof on

request.

At the end of the lease, the landlord may apply the deposit plus interest earned towards
the payment of all amounts for which the tenant is liable under the lease. The balance of
the deposit and interest must then be refunded to the tenant not later than 14 days after
the restoration of the property to the landlord. (This time frame is relevant only if the

deposit is used by the landlord for amounts owing and not paid directly by the tenant)

Etchells and Young Property Brokers P A G E 7