A lease agreement may look like just another document to sign before moving into a property or renting it out.

But a lease agreement is much more than that.

It sets out the rights and responsibilities of both the landlord and the tenant and can become extremely important if a disagreement arises later.

Whether you are a landlord renting out your property or a tenant renting a home, taking the time to review your lease agreement before signing it can prevent serious problems later.

1. Don’t simply sign because it is a “standard” lease

One of the biggest mistakes people make is assuming that a standard lease agreement is automatically suitable for their situation.

Every rental arrangement is different.

The property may have specific rules. The landlord and tenant may have agreed on particular responsibilities. There may be pets, parking arrangements, prepaid electricity, garden maintenance, deposits or other conditions that need to be properly recorded.

A lease should reflect the actual agreement between the parties.

A clause that worked perfectly for another property may not necessarily be appropriate for yours.

2. Know exactly what you are agreeing to

Before signing, both parties should understand what the lease actually says.

Important questions include:

  • What is the monthly rental?
  • When must the rental be paid?
  • Is there a rental escalation?
  • How much is the deposit?
  • What happens to the deposit at the end of the lease?
  • Who is responsible for electricity and water?
  • Who maintains the garden?
  • Who is responsible for repairs?
  • Are pets permitted?
  • Is subletting allowed?
  • What happens if the tenant pays late?
  • What happens if either party wants to cancel the lease?
  • What notice must be given?
  • What happens when the lease reaches its end date?

These may seem like simple questions, but disagreements often arise because the parties had different understandings of what was agreed.

3. Make sure the property is properly described

A lease should clearly identify the property being rented.

This is particularly important where there are additional areas or facilities involved, such as:

  • garages;
  • parking spaces;
  • storerooms;
  • gardens;
  • outbuildings;
  • pools; or
  • other areas included in the rental.

A clear description helps prevent disputes about exactly what the tenant is entitled to use.

4. Understand the financial obligations

Money is one of the most common sources of disputes between landlords and tenants.

The lease should clearly explain the financial obligations of the parties.

This includes the rental amount, payment date, deposit, additional charges and any agreed increases.

Don’t assume that something is “obvious”.

If the parties have agreed that the tenant must pay a particular expense, it is better for that arrangement to be clearly recorded in the lease.

5. Pay attention to maintenance and repairs

Who must repair a leaking tap?

Who is responsible for a broken geyser?

What happens if the garage door stops working?

What about damage caused by the tenant?

Maintenance provisions are extremely important because disputes can quickly develop when each party believes the other is responsible.

A properly drafted lease should clearly distinguish between the different responsibilities of the landlord and tenant, subject to the applicable law.

6. Understand the cancellation provisions

Cancellation is one of the most important parts of a lease agreement.

What happens if the tenant wants to leave early?

What happens if the tenant stops paying rent?

Can the landlord simply cancel the lease?

What notice is required?

These questions should not only be considered when something goes wrong.

They should be considered before the lease is signed.

A lease cannot simply override legislation. Residential leases in South Africa are subject to applicable legislation, including the Rental Housing Act and, where applicable, the Consumer Protection Act.

7. Check the breach provisions

A good lease should explain what happens if one of the parties breaches the agreement.

For example, what happens if:

  • the tenant fails to pay rent;
  • the tenant causes serious damage to the property;
  • the tenant keeps an unauthorised pet;
  • the landlord fails to attend to certain obligations; or
  • either party fails to comply with an important term of the lease?

The lease should provide a clear framework for dealing with breaches, while remaining consistent with applicable legislation.

8. Check the inspection provisions

The condition of the property is extremely important.

Landlords and tenants should consider conducting proper inspections when the tenant moves in and when the tenant moves out.

Photographs can also be extremely useful.

A detailed record of the property’s condition can help prevent arguments about whether damage existed before the tenant moved in or occurred during the tenancy.

9. Don’t ignore the “small print”

Sometimes the most important provisions are the clauses people don’t read carefully.

For example:

  • renewal provisions;
  • rental increases;
  • notice requirements;
  • utilities;
  • access to the property;
  • visitors;
  • pets;
  • alterations;
  • subletting;
  • maintenance;
  • insurance;
  • breach and cancellation; and
  • dispute-resolution provisions.

The fact that a clause is buried towards the end of the agreement does not make it unimportant.

10. Review the lease when circumstances change

Reviewing a lease isn’t only important when entering into a new rental agreement.

Circumstances can change.

The rental may change.

The parties may agree to additional responsibilities.

The property may be sold.

The tenant may request changes.

The lease may be renewed.

When important changes occur, make sure the agreement properly records them.

Don’t rely only on verbal agreements or WhatsApp messages for important changes.

A lease agreement is there to protect both parties

A properly considered lease agreement isn’t designed to benefit only the landlord.

It provides clarity for both the landlord and the tenant.

For landlords, it can help establish exactly what the tenant agreed to.

For tenants, it can help establish exactly what they are entitled to expect from the landlord.

The goal isn’t to create conflict.

The goal is to prevent conflict by making the agreement clear from the beginning.

Before you sign, read it. Understand it. Question it.

A few minutes spent reviewing a lease agreement before signing it can potentially save hours of frustration and significant legal costs later.

Don’t sign a lease simply because someone tells you it’s a “standard agreement”.

Make sure it is suitable for your particular rental arrangement and complies with the applicable law.

If you don’t understand a clause, ask questions before signing — not after a dispute has already started.