This form of lease provides landlords greater ability to take quicker action on non-payment. A month-to-month lease only carries a 7-day letter of demand which is effective for landlords when instituting action should the tenant breach the rental contract. Short term leases (1, 3 and 6-month leases)įundamentally, the pros for a landlord of a month-to-month lease is that if a tenant cannot afford to pay their rent, the lease can be legally cancelled earlier, allowing the landlord to place a new tenant in their property and generate an income. They are only bound to give the amount of cancellation notice stipulated in the contract, namely 60 days for landlords and 30 for tenants. That said, even in a “fixed” lease, each party has the right to cancel at any time. Over time, the demand for choice and flexibility over set contracts means that more and more landlords and tenants are opting to give month-to-month leases a chance because of their ability to respond to non-payment by a tenant. There are also implications for the property agent fees as the complete 12-months’ worth of fees would be payable even if the lease is cancelled early. Ultimately, this results in landlords having to wait longer before cancelling the lease if the payment is not received.
The negatives of these lease agreements are that for landlords it impacts the timing of the letter of demand and lease cancellation process. The standard 12-month fixed-term lease carries a 20-day letter of demand meaning that if the landlord wants to cancel when a tenant does not pay, then they need to provide the tenant 20 days to remedy the situation, before a lease cancellation notice can be issued on day 21. For tenants, it meant not having to move so often and for landlords the fixed time and related penalties means a relatively hassle-free income over the coming year. Historically, there has been a sense of comfort around securing a longer-term lease. The standard twelve-month lease agreement These time frames are the benchmark, however in some cases can vary from one contract to another provided they are stipulated in the lease agreement. The general practice is that a landlord must provide two months’ notice to a tenant, whilst a tenant can give the landlord 20 business days’ notice of early cancellation. Similarly, a landlord also has a right to cancel the lease arrangement early – given specific circumstances such as needing to occupy the property themselves, or if they intend on selling the property. However, should tenants foresee that they will not be able to pay the rental amount as per the lease agreement, there is a provision for a tenant to cancel early. Historically, lease agreements have been signed for a 12-month period, during which rental is paid in advance monthly in 12 instalments.
RENTMASTER LEASE TAKEOVER FORM FULL
These include a legally binding lease agreement signed in full by both parties, evidence of invoices and payments up to the current date, an official letter of demand for the monies owed, evidence of sending the letter of demand and receipt thereof, and a letter of lease cancellation. In South Africa, the entire legal process is regulated by the Rental Housing Act, and the rights and obligations derived from this act are also housed in the lease agreement.Įviction is an absolute last resort for both the tenant and the landlord, and requires a great energy investment beforehand to secure the elements necessary to have a successful eviction. Globally, there may be a few variances, but the basic principle is that landlords have the right to claim their rent, demand unpaid monies, and cancel the lease. In short, tenants are liable for rental, and landlords have the right to claim their rental or cancel their lease with a non-paying tenant. While it is true that tenants can’t simply be thrown out onto the street without due process, both tenants and landlords have rights and obligations to uphold the contract that they enter into. There is a lot of fearmongering and misinformation out there surrounding eviction, leaving many people bewildered by how complicated the process seems. I share my insights into the pros and cons of month-to-month versus fixed term leases, and how they can ensure landlords earn the maximum potential income from your property. However, understanding the law surrounding how rights and obligations in your lease can be mind-boggling at first glance.
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