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| Do you know your leases |
| November 16th, 2006 |
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| Note: You can discuss this article at the bottom of the article |
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Following enquiries from the public about leases, we are revisiting the issue, this time with specific reference to the rights of tenants and their responsibilities.
Shortage of accommodation is a universal problem that affects accommodation seekers even in Zimbabwe. While the law is there to take care of unfair leasing practices and to protect the renting public from rapid increases in rents, it is important that consumers enter into accommodation lease agreements from an informed position. Many consumers and landlords enter into written lease agreements without understanding fully their rights and obligations. The following are some helpful guidelines:
THE CONTRACT
There should be two parties who have the intention to agree that one party (the lessor or landlord) shall give the other part (the lessee or tenant (the use and enjoyment of immovable property (in the case of house, flat, or part of it) in return for the payment of rent. Any lease is therefore an agreement between the lessor/ landlord and lessee/tenant that the former will let a property to the latter for an agreed rental. Usually the rent is payable in any of these ways:
a) Paying directly to the landlord
b) Paying through an estate agent, or
c) Paying into a bank account
REQUIREMENTS OF A LEASE
The two parties must agree, expressly or impliedly, upon the use and enjoyment of property and upon the rent payable. This also included the need for the landlord no to interfere with the tenant’s enjoyment and use of the property. The property must also be identifiable e.g. a seven roomed farmhouse or a four roomed house on a specified physical address.
AGREEMENT ON THE RENT PAYABLE
Agreement on the rent payable is a requirement of all contracts of lease. The amount payable must be certain or ascertainable e.g. $1 million per month. In the case of leases covering a number of years, it may be necessary for the parties to stipulate the rent payable for different periods e.g.
January 1 2004 - December 31 2004 $2 million per month
January 1 2005 - December 31 2005 $2 300 million per month
January 1 2006 - December 31 2006. $2 645 million per month. In the above the rent increased by 15 percent every year for three years. The agreement should be specific about the dates of review or rent payable when the lease comes to an end. This is usually the time for entering into discussions about the rent if there is an action for the lessee/tenant to renew the lease.
DURATION OF THE LEASE
Leases can fill the three main categories i.e.
a) Those entered into for a fixed period e.g. from July 2000 July 2002
b) Those that can be terminated at the will of either party.
c) Those which are long term e.g. 10 years.
LESSOR’ S OBLIGATIONS
a) To deliver the property let
b) To refrain from disturbing the lessee in the enjoyment of the property.
c) To ensure that the property is in the condition agreed upon.
d) To warrant against defects in the property
e) To pay costs such as levies, rates and taxes.
LESSE’S OBLIGATIONS
a) To pay rent
b) To take proper care of the property and not use it for the purpose other than for which it is let
c) On termination of the lessee, restore and deliver property in the same order and conditions as it was received, reasonable wear and tear expected
REPAIRS
External and structural (major) repairs are the lessor/landlord responsibility. Minor maintenance and repairs are the lesses/tenant responsibility. Any major repairs done by the tenant should be authorised by the landlord. Otherwise the landlord will not be liable to reimburse the costs.
NOTICE TO TERMINATE A LEASE
In terms of the regulations,(Statutory Instrument 51 626 of 198), the following notice periods apply:
a) Lessor/landlord: at least two calendar months
b) Lessee/ tenant: at least one calendar month
The lease agreement can have different periods but they should not contravene the Rent Regulations for them to be enforceable.
GOOD TENANCY DEPOSIT
This is a deposit paid by the lessee/tenant to the lessor/landlord and the latter on to it for the duration of the lease and is required to release the deposit 14 days after the tenant vacates the premises. Presently, the deposit does not earn interest and the lessee/tenant cannot ask the lessor/landlord to reimburse the deposit with interest.
The deposit can be less than a month’s rent of equivalent to it depending on what is agreed between the lessor/ landlord and the tenant/lessee. It should however not exceed a month’s rent.
The deposit can settle any of the following:
a) Unpaid Bills left behind when lessee/tenant leaves.
c) Repairs for damage caused by lessee/tenant during the period of the lease, and
d) Rent for the following month if lessee/tenant leaves without giving notice.
STATUTORY TENANCY
A tenant/lessee cannot be evicted simply because a lease has come to an end or by the passage of time. He/she can carry on occupying the property as long as he/she continues to pay the agreed rent at the agreed time and observe all the terms and conditions of the lease agreement.
TERMINATION OF THE LEASE CONTRACT
The contract of lease can be terminated
1) On the date initially agreed.
2) When fundamental conditions of lease are broken e.g. failure to pay rent or damage to property
3) When landlord or his family wants to take occupation
4) When renovations of a long term nature have to be done.
5) When local authorities dictate different use of properties in a specific area e.g. residential area changing to commercial area.
ADVICE
Consumers must read carefully and understand all terms of lease agreement before signing it. Please feel free to suggest any topics, you would like us to cover
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