Demystifying the deposits and expenses you pay for your rental
Category Advice
After searching for your ideal rental home, you've finally struck gold. The area is perfect. The property fits your every need. The landlord is a delight. Everything is falling into place until you see the upfront rental expenses you need to pay. These don't need to be stumbling blocks for new renters. By budgeting ahead, you'll be able to sign your lease agreement with confidence. Here's a rundown of some of the costs you can expect.
Rental deposit
While not a legal requirement, your landlord has the option to have you pay a deposit before moving into the property. According to the Rental Housing Act, both you and the landlord must agree upon an amount stipulated in your lease agreement. Generally, the amount is equal to one month's rent.
By law, your landlord must invest your rental deposit in an interest-bearing account. Your landlord will provide you with a receipt listing the date and amount of your deposit. You will be able to request written proof of the interest accrued at any time during your lease period.
When you vacate the property, your deposit will be returned together with any accrued interest. However, if there are any repairs needed to be done for damages you have caused during your occupancy, the charges will be deducted from your deposit. These repairs do not include general wear and tear. In special circumstances, your landlord can agree to let you use your deposit to pay your last month's rent of your lease period.
First month's rent
Your landlord or managing agent will collect your first month's rent in advance. Together with your deposit, these are often the major funds required before they hand over keys to the property. After the first month, you will need to pay your rent monthly before a date defined in your lease agreement.
Key deposit
Carelessness can happen to anyone. The key deposit is a minimal amount you pay to replace any lost or damaged keys you are responsible for during your rental period. The amount should not be more than the price to restore the keys. If you return the keys when you move out, you will be entitled to receive your full key deposit back.
Utilities or service deposit
Your utilities can include water, electricity, refuse, and sewerage. This deposit is collected if you, as the tenant, are responsible for paying these bills directly. If you fail to pay, your landlord or managing agent will use this deposit to cover the cost of the pending utility bills. Should you have no default utility bill payments when you move out, this deposit will be returned to you in full.
Inspection fee
According to the Rental Housing Act, you and the landlord must jointly inspect the property before you move in. During this process, you will all verify the existence of any property defects or damages. At the end of the lease, you and the landlord must arrange a joint inspection of the property to determine if there was any damage caused during your occupancy. This inspection fee covers the costs of your rental inspections.
Admin fee
The admin fee is billed for once-off processes at the start of the rental process. These can include processing your application, doing a credit and reference check, and drafting a compliant rental agreement.
Monthly sundries
This cost covers the printing and postage of your monthly rental invoice. Your invoice provides a breakdown of the different costs of your property including basic rent, electricity, water, etc. where applicable. Be sure to evaluate this document each month to ensure you are using your utilities wisely.
Get ready for renting
De Lucia Group are rental experts. We help you navigate your rental agreement, rental costs, and help you settle down in your new neighbourhood. And with rental properties in Gauteng, you're sure to find your perfect match. View our listings and send a message to our team today. You can also call Michael De Lucia directly on 082 493 1089, or email michaeldl@delucia.co.za for advice.
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Author: De Lucia Group
