Traditionally, landlords request a deposit equal to one month rental. However, in recent times it’s increasingly more commonplace for landlords to ask for two and even three times the monthly rental, as a deposit. This is a sign of the times that we live in.

There is no applicable ‘cooling off period’ that I am aware of for a tenant who signs a lease agreement. Furthermore, the landlord is not obliged to accept any replacement tenant that you may put forward, even though the landlord may have agreed to allow you to help in this regard.

If your lease falls under the CPA, you may be liable for a ‘reasonable’ cancellation penalty if you cancel early. In the circumstances you have set out, a cancellation penalty equal to one months rental may well be ‘reasonable’. It’s doubtful that the RHT will be able to assist you in this regard.

Good luck, and thanks for the question.

I moved into a houseshare in April, after paying two months deposit (i.e. I paid three month’s rent upfront). I signed the lease on Wednesday 3 April. That weekend, I was given the opportunity to live somewhere else for much cheaper and decided to take it. I informed my landlord on Monday the 8th April that I would be moving out at the end of the month. As per our lease agreement, I tried to find a replacement tenant and had 15 people come to see the house.

Because the landlord required so much money upfront, no-one could afford to move in although most of them loved the house. I told him that he should change the required deposit. I moved out on Sunday 5 May and said that I would continue to forward emails from interested parties to the landlord, but because I no longer lived there could not show people the room myself. The landlord only found a replacement for June and said that I am only due one month’s deposit back as the room stood empty for May.

In my situation, am I still bound to the lease agreement even though I let him know within 6 days i.e. within 7 days “cooling off period”? Was I bound to find a replacement? If not, should I contact the Rental Tribunal and fight for both month’s deposit back.

Thank you so much

Replace the carpet, I think.

A ‘once-off’ seller would certainly not be classified as a ‘supplier’ under the Act. So it’s fair to say that it’s unlikely that your contract falls under the CPA.

Generally, the voetstoots clause is used in contracts that do not fall within the ambit of the CPA. The voestoots clause usually protects the seller from liability for a latent (hidden) defect which is not visible on a reasonable inspection by the purchaser. However, not if the seller new about the defect and failed to make a disclosure before signing the contract. Typically this disclosure is done in writing and it usually forms part of the Deed of Sale.

Out of the goodness of your heart, you have firmly established that you knew about the defect. Kudos to you!

If there’s any doubt in your mind about this, it may be worth your while to consult with an attorney. Many will impart some basic advice free of charge.

Thanks for the question and best of luck.

Please help. We just sold our flat, but there was a hole burned in the carpet by the previous tenants. Because a cupboard stood over it, we forgot about this. They got the purchase price at a lower rate that we wanted, and when I came forward (just out of decency) and let the sales agent know about the hole and that we simply forgot about it- they (the buyers) want us to replace the carpet. The carpet was old and now they want a brand new one at our cost.

Above you mentioned that the “voetstoots” clause does not affect a “once-off” seller? Is this true? Do I need to replace the carpet?

Under the CPA the 5-day cooling-off period applies to instances where direct marketing resulted in a transaction. You viewed the property with an agent. So it was probably the agent, and not direct marketing, that was most likely the effective cause of the sale. Had you seen the advert and then immediately thereafter signed the lease agreement, you may perhaps have claimed the 5-day cooling off period.

You haven’t paid a deposit yet which means that the 1st agent can’t simply make a deduction from your deposit, in lieu of the first month’s rental. Legal action is expensive, so you may get away with it. However, you might not. It may be more constructive to offer to help with finding a suitable replacement tenant.

Thanks for your contribution and your kind remarks.

Under the CPA, if a tenant cancels early, the landlord is entitled to levy a ‘reasonable’ cancellation penalty. As your landlord will be out of pocket for July’s rental, it may well be ‘reasonable’ for the landlord to hold you liable for July month’s rental.

Perhaps you could sit down with your lessor and negotiate a payment plan for the balance, in view of your financial constraints. If your proposal is reasonable, there should be no reason to turn you down. You will also preserve your credit record.

Best of luck.

I signed a lease contract yesterday to start occupy a house on 1 July. Today I saw another house and rather want that one. I haven’t paid any deposit yet and contacted the 1st Agent to ask if we could cancel the contract. He said no, I am now bound by the contract.

Is there any rights to a cool-off period of 5 days that I can rely on (according to the CPA)? The house was advertised on Gumtree and I then worked through the Agent to view it etc.

Your prompt reply would be appreciated.

Unless you are renting out properties “in the normal course of business,” you are not a supplier and the CPA does not apply to your rental agreement. A “cancellation penalty,” as envisaged by the CPA, is not applicable. Your tenant is bound by the terms of the lease agreement and may be liable for the balance of the lease period.

If the tenant has appointed an attorney, a consultation with your own attorney may be due on this matter.

Notwithstanding the above, there’s precious little point in legal action if the respondent has no money. If your tenants can no longer afford the rental it may be in your best interests to get rid of them, and find a replacement as soon as possible.

Good luck.

I currently have a issue and want to make sure I am taking the right steps.

My rental contract at a commercial property is over end of July. I gave notice
that I will be vacating the premises end of June. (one month before the contract end)
I am renting through Rabie. I sent my notice one month in advance (end of May).

I gave a one month notice, but they are asking me to still pay full lease for July.
Is this right or is my one month notice valid, can I still be charged for the
one month left of the contract?

I also referred them to a potential client that is willing to take the space over once we leave.
They now signed with my referral, but only from August onwards. That leaves me with the month of July
to pay.

I gave notice as I am not in the financial state to pay the extra month.

I hope to hear from you soon.
Thank you for your time.
Bianca

They can’t afford to stay and have now decided to go with the consumer act to get them out. The tenant has got an attorney involved so it is a bit tricky.

Does this still apply if we are the owner letting out the property and not a ‘supplier’

Also how does it work with the penalty fee? Does this have to be stipulated in the contract or is it decided on when the tenant cancels, as we just used the standard lease agreement which doesn’t state anything about the consumer act?

It just feels a bit unfair how a ‘bad’ tenant who can’t afford a property can get out. The consumer act should be related to ‘suppliers’ who don’t offer a good service.