Rental deposits

[Basment Dweller]

For the landlords out there, I'm curious as to how you handle your security deposits from tenants, do pay back the deposit + interest at the end of the lease? I've never agreed to that in a lease and just pay the amount and skim the interest for myself, is this legal?

[julies]

According to the Rental housing act, the deposit needs to be kept in an Interest bearing account for the tenant. So yes what you are doing is not legal.

https://www.google.co.za/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCYQFjAB&url=http%3A%2F%2Fjutalaw.co.za%2Fmedia%2Ffilestore%2F2013%2F11%2Fb_56_-_2013_-_Rental_Housing_Amendment_Bill.pdf&ei=8nEHVNidGKL17AbRPA&usg=AFQjCNFS2N9SMa54wMmb2bFA4DNaiaRzbQ&sig2=09A3emHYck1uUlVyCA6UcQ&bvm=bv.74115972,d.ZGU

[Basment Dweller]

Ok thanks for the update, and thanks for the pdf, I'm currently reading it and will keep it on file.

[julies]

Hi, this is a better document from legal aid https://www.google.co.za/url?sa=t&rc...74649129,d.ZGU

[Basment Dweller]

VERY useful thanks! Do you haven any other goodies for landlords?

How do you handle tenants who pay late every month but pay eventually, do you let it slip and 'work with them' or do you start the eviction process the day they are late? I've heard differing views from different landlords.

Also what's the eviction process like? Is it worth going through it as a landlord?

[Phil Cooper]

Hi

Register with TPN (Tenant's Profile Network) (http://www.tpn.co.za/Guest/home.aspx). Costs you nothing unless you use their services - which are GREAT.

When you confirm payment from the tenant, they get an email saying they are on time.

IF they pay late, they get SMS saying he is late, and this affects their rating, etc.

You can blacklist tenant's name with credit bureau, check a potential tenant's credit record (at a fee) - al in all a brilliant company.

Well worth signing up.

[Basment Dweller]

Thanks Phil,

TPN is great I've used them before for credit checks but never had a look at their other service offerings, I've just sent them the registration forms for my rental company.

Quick question, what's stopping the landlord from falsely reporting late payments with tenants?

[Phil Cooper]

Called defamation if the tenant finds out?

[Houses4Rent]

I responded yesterday as post #2, seems to have gone into a black hole and would like to know why?

We use TPN all the time, definitely the best source of info and support systems. Since we are different than then the bulk we cannot use all their good products, but its the best out there in my view. I know the CEO fairly well.

Letting is a business, not a charity so a (constant) late payer needs to be brought in line. Eviction is too costly and overkill in this case. Why not just wait until lease expires, do not renew it and find a better tenant with the help of TPN or a decent letting agent. Of course, the later is probably even harder to find than a decent tenant...

[Houses4Rent]

Quick question, what's stopping the landlord from falsely reporting late payments with tenants?

What purpose would it serve other than creating yourself serious headaches?

[Basment Dweller]

Letting is a business, not a charity so a (constant) late payer needs to be brought in line. Eviction is too costly and overkill in this case. Why not just wait until lease expires, do not renew it and find a better tenant with the help of TPN or a decent letting agent. Of course, the later is probably even harder to find than a decent tenant...

100%, renting is a business and when you give tenants an inch they take a mile and it's difficult to reel them in because they cry abuse and make the landlord look like the asshole. I've had these tenants for 3 years and they're always late and rack up big utility bills, and then complain to me when the city cuts the electricity and charges them the reconnection fee.

I was desperate for tenants when I brought these guys on but now that I'm in a stronger position now, I'll definately ice them at the end of the lease and bring on new prospects, even if it takes a month or two of vacancies.

Preferably young professionals that are out working all day and earn salaries and NO PETS.

[julies]

Talking about the eviction process, Has anyone got a estimate of the costs involved ?

[Houses4Rent]

How long is a piece of string? I doubt one can you a ballpark figure as it depends on countless variables.

[Basment Dweller]

Talking about the eviction process, Has anyone got a estimate of the costs involved ?

This happened to us some years ago at the cluster house, took 8 months to get the tenant out, the sheriff came to remove his furniture and place it on the pavement, he came up with 8 months rent immediately...legal fees were a bitch, don't know what we paid those days but we definitely lost out.

I've also been in a situation where a tenant stopped paying and we had to go into litigation, they paid up the rent but removed 11 air conditioners and removed the carport coverings (it was a commercial property) and did serious damage to the property making it untenantable, that little exercise cost me R80k and took 3 years for me to pay the lawyer. A nightmare I'll never let happen again.

In my experience, tenants always have the upper hand, especially in a residential lease, they can stop paying, destroy the place, be nuisance etc and its DIFFICULT to control, and the legal route is a LAST resort. Once you get lawyers involved, it's game over, that's why I try handle disputes face to face with people and avoid lawyers at all costs!

In my opinion, the KEY to landlording is good tenant placement, never compromise even if you have to stay vacant.

I've had very good experiences with tenants in recent years, sometimes 8 months goes by with no phone calls and money rolling in, it's a dream if you have a good tenant.

[Dave A]

I responded yesterday as post #2, seems to have gone into a black hole and would like to know why?

Absolutely no trace of the post you refer to, I'm afraid.

As to why - Most likely cause is the full packet stream didn't make the trip all the way to the intended destination when you posted. And like missing socks, no-one knows where they end up. They just vanish without a trace.