The Rental Housing Amendment Bill 2014 was signed into law by President Jacob Zuma in November 2014, but at the time of publication of this manual (late 2015) the commencement date had not yet been announced. This Bill makes numerous amendments to the Rental Housing Act (No 50 of 1999) amounting to the most fundamental changes to residential tenancy law in 15 years. However, these will only be effective six months after the president announces the commencement date.

The Bill proposes further protections of the landowners’ rights and extends protection to prospective tenants, tenants’ family and visitors. The landowner would also be prevented from unreasonably withholding consent for a tenant to sub-let.

One of the most important changes in the Bill is that of ensuring habitability. Owners will need to ensure that the dwelling for rent is habitable, that is, suitable for living in with adequate space, protection from the elements and other threats to health, Habitability also means that the building is structurally sound and physically safe for the tenant, the tenant’s household members and visitors, the Bill also affirms that the land owner is responsible for basic maintenance of the premises and states that the landowner is responsible for “maintenance that includes such repairs and upkeep as may be required to ensure that a dwelling is in a habitable condition…”

The Bill proposes significant changes to the rental housing tribunals in each province. The number of tribunal members will increase to seven with no more than two members being legal practitioners. The Bill mandates that tribunal members and staff must also receive training to ensure a better service for the public. The Bill also allows for two simultaneous hearings in a province to be held and enables hearings to be held with a minimum of two Tribunal members or commissioners for each sitting.

The Bill enables a landowner or tenant unhappy with the Tribunal’s decision to make an appeal to a panel of adjudicators, rather than having to pay the legal costs for an appeal to the High Court. Each provincial MEC for human settlements will be responsible for setting up the panel.

Other important changes under the Bill concern leases. All future leases will have to be in writing and no leases by oral agreement will be allowed. The onus is on the landowner to ensure that a written lease is provided. The minister for human settlements will be required to provide a pro- forma lease in all 11 official languages. The minister will also be required to develop relief measures and other social programmes for poor and vulnerable tenants and those with disabilities.

The right of the tenant to request written receipts from the landowner is also affirmed in the Bill. Such receipts would need to include dates, address or description of the property to which they relate, whether the receipts are for payment of rental, arrear rental, deposit payment or otherwise. The receipts must also stipulate for which period payment is made and received.

The tenant’s right to privacy is affirmed by the Bill which includes the right not to have the property searched or seized without a ruling by a court or tribunal. However, the tenant must, on request by the landowner, make himself or herself available to conduct a joint inspection of the dwelling at a time convenient both parties.

The Bill also sets out the tenant’s rights not to have his or her possessions searched and seized (except by a ruling of a tribunal or an order of court). The tenant also has the right to privacy of his or her communications.

The Bill would direct municipalities to establish rental housing information offices to provide advice to tenants and landowners. However, the Bill does not direct that national or provincial government must make the necessary funds available for this important initiative effectively creating an “unfunded mandate” which municipalities may be reluctant to implement.

The landowner’s right to require a security deposit from the tenant is affirmed by the Bill. However, such a security deposit:

1. May not exceed an amount equivalent to an amount specified in the lease or otherwise agreed upon between the parties; and
2. must be invested by the landlord in an interest-bearing account with a financial institution: Provided that the rate applicable to such account may not be less than the rate applicable to a savings account with that financial institution.

The Bill would ensure that tenants also have the right to request written proof of interest accrued on the deposit paid.

Important changes are made by the Bill in regard to the end of the tenancy. At the expiration of the lease, the landowner must arrange a joint inspection of the dwelling at a mutually convenient time to take place within a period of three days prior to the expiration to determine if there was any damage caused to the dwelling during the tenant’s occupation. Failure by the landowner inspect the dwelling in the presence of the tenant is deemed to be an acknowledgement by the landlord that the dwelling is in a good and proper state of repair and the owner will have no further claim against the tenant. If the tenant fails to respond to the land’s request for an inspection, the landowner must, within seven days inspect the dwelling in order to assess any damages or loss which occurred during the tenancy.

The Bill provides that the landowner may deduct from the tenant’s deposit the reasonable cost of repairing damage to the dwelling but must refund the balance of the deposit and interest after any such deductions to the tenant within 21 days after expiration of the lease.

The Bill also changes the term “Landlord” to the gender-neutral “Landowner”. Finally, the Bill sets out landowner’s rights which include the right to:

• Prompt and regular payment of rental
• Recover unpaid rental, after obtaining a ruling by the tribunal or an order of a court
• Terminate the lease on grounds that do not constitute an unfair practice and are specified in the lease
• On termination of the lease to the tenant vacate the dwelling and to receive the dwelling in a good state of repair, except for fair wear and tear

The human settlements minister will be obliged to promulgate regulations for the Bill within six months of its commencement date.

Again, it needs to be emphasised that:

• By late 2015 the commencement date had not yet been announced
• The above noted amendments will only apply six months after the commencement date