The Importance of a Clear Lease Agreement
Category RealADVICE
Before you sign on the dotted line of any contract or agreement related to property, you should always hand it to a trusted Property Practitioner to look over it in detail.
"This way, you can protect yourself from any additional unexpected charges," says Gerhard Kotzé, CEO of the RealNet property group, "and, it will help you understand exactly what the limitations and terms of the contract are.
"This is particularly important when you are signing a lease agreement with a landlord, as landlords cannot add charges or cut services without a tenant's consent unless the lease specifically allows for it or an amendment is agreed upon.
"A lease agreement is a mutual contract where a landlord allows a tenant to use a property temporarily in exchange for rental income. Both parties must adhere to the agreement's terms and cannot alter them without mutual consent.
"The landlord's duties often include ensuring that the tenant can access and peacefully enjoy the property. Additionally, services like cleaning or gardening can be included in the lease, but these services need to be agreed upon in the lease or in a later addendum.
"A recent example of this recently hit headlines where a gym was renting a property and ran into some issues with its landlord. The landlord installed a generator on the premises which allowed the gym to operate during loadshedding, but no provision was made at the time for any additional charges or levies.
"According to the lease agreement, the gym was to pay a comprehensive fee covering all costs associated with leasing the premises. However, the landlord only demanded that the gym pay an additional fee for the use of the generator several months after installing it. They noted that if the gym failed to pay, they would disconnect it from the generator.
"The matter ended up in court where it was ruled that the use of the generator was so closely connected to the use of the premises as a whole that the gym had a 'quasi-possessionary' (a legal concept related to possession, but not full ownership) right to use the generator.
"The Court then decided that by disconnecting the gym from the generator, the landlord was unlawfully disturbing the gym's use of the premises, and as a result, the landlord was ordered to reconnect the gym to the generator.
"This just goes to show how important it is to read over a lease agreement or amendment with your Property Practitioner before getting a tenant to sign. Otherwise, you could end up costing yourself more money in the process."
Author: RealNet
