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For the tenant:
◆◆ The tenant can claim the rental expense as a deduction for tax purposes if the rental

payment or expenditure was actually incurred in the production of income.
◆◆ If improvements are made to leasehold property in terms of a lease agreement by the

tenant, the tenant may deduct such expenditure over the period of the initial lease or
25 years (whichever is shorter).

THE RENTAL HOUSING ACT

The Rental Housing Act (50 of 1999), as amended, aims to regulate the relationship
between tenants and landlords by setting out general requirements relating to leases, laying
down general principles and governing conflict resolution. The Rental Housing Tribunal’s
function is to ensure that unfair practices between landlords and tenants are eliminated and
hence it interprets both the Act and the Procedural and Unfair Practice Regulations, where
applicable, in its deliberations. The service is free to both tenants and landlords. A lease will
be deemed to include a number of terms, which cannot be waived by either party, such as:
◆◆ That the landlord must furnish the tenant with written receipts for all payments received

by the landlord from the tenant.
◆◆ If on the expiration of the lease, the tenant remains in the dwelling with the express or

tacit consent of the landlord, the landlord and tenant are deemed, in the absence of
a further written lease, to have entered into a periodic lease, on the same terms and
conditions as the expired lease, except that at least one month’s written notice must be
given of the intention by either party to terminate the lease.
◆◆ A deposit must be invested by the landlord in an interest bearing account, such interest
not to be less than the rate applicable to a savings account. During the period of the lease,
the tenant is entitled to request proof from the landlord in respect of interest accrued.
◆◆ Leases must be reduced to writing. The onus will be on the landlord to make sure it is
in writing.
◆◆ A tenant has the right, during the lease period, to privacy, and should the landlord wish
to exercise his or her right of inspection, the inspection must be done in a reasonable
manner after reasonable notice to the tenant, and consent to sub-let may not be
unreasonably withheld.
◆◆ A landlord must provide a tenant with a dwelling that is fit and suitable to live in, maintain
the existing structure of the dwelling and facilitate the provision of utilities to the dwelling.

Due to the limitations in the length of this guide, all of the provisions of the Act (as
amended), and Regulations cannot be included in this guide.

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