Page 14 - Nexia SAB&T Property and Tax Guide 2024

THE RENTAL HOUSING ACT

The Rental Housing Act (50 of 1999), as amended, aims to regulate the relationship between tenants and landlords
of residential property (utilised for dwelling purposes) in South Africa – 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, some of which are listed below:
◆ 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.
◆ 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.
◆ 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.
◆ The Rental Housing Amendment Act (35 of 2014) addresses some of the shortcomings of the Act, and will
come into operation on a date yet to be proclaimed. Some of the main changes that the Amendment Act
brings about are that:
❖ Leases must be reduced to writing. The onus will be on the landlord to make sure it is in writing.
❖ The deposit and interest accrued on it must be paid to the tenant within 7 days of the expiration of the
lease, however a reasonable cost incurred in repairing damage to the dwelling may be deducted from the
deposit, but relevant receipts reflecting these costs must be made available to the tenant for inspection.
Failure by a landlord to repay the deposit to the tenant is a criminal offence.

REGULATIONS FOR NEW BUILDINGS AND ENERGY USAGE

The Energy Efficiency Regulations for energy usage in buildings provide that all new buildings and building extensions
in South Africa must conform to the regulations on energy conservation, including homes, industrial buildings, hotels
and schools. Building plans will not be approved without compliance, and Inspectors are required to confirm same,
specifically energy usage requirements. No compliance – no Occupancy Certificate.

TAX ALLOWANCE FOR ENERGY-EFFICIENCY SAVINGS
Regulations on the tax allowance for Energy-efficiency savings stipulate that any company holding a certificate
that can prove their energy savings are genuine, can submit the certificate to claim an allowance from SARS.
The allowance is as contemplated in Section 12L (2) of the Income Tax Act, 1962. Section 12L provides that tax
incentives are available for savings in all energy forms, and not only electricity. The energy-efficiency savings tax
incentive is calculated at a rate of 95c/kWh and also applies to cogeneration projects.

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