PROPERTY NEWS - Tenants have a particular responsibility when it comes to the payment of their rent, and failure to do so can be regarded as a breach of contract. Here are the myths and truths surrounding the correct procedure of paying your rent.
Time for payment
This is stipulated in your lease. If you are doing an EFT, the money must reach the landlord’s bank account by the appointed date. You are still in breach of your lease if you have instructed that payment be made, but the payment has not reached the landlord’s account by the appointed date, or if you have made the transfer from one bank but the payment has not yet reached the landlord’s account by the appointed date because he banks with another bank.
Place for payment
You need to make payment to the landlord’s nominated account. Making payment into any other account or to any other person (for example, paying a plumber to do something that you wanted the landlord to do for you, or paying into the municipality’s account) does not count as payment to the landlord. Payment to a body corporate instead of the landlord, or to a hijacker or a “tenants’ committee” does not count as payment to the landlord.
Manner of payment
If you make payment in any manner other than those permitted by the lease (for example, if you are required to pay into the landlord’s bank account but you deposit cash into his account instead), you are breaching the lease. If you deposit cash directly into the landlord’s account, or you give the landlord cash, then you will likely be held liable for the cash deposit fees.
Penalties for late payment
The landlord is not legally entitled to charge you any amount as a penalty, other than interest, for late payment. However, there are a number of other courses of action that the landlord might take if you pay late...
Breach of lease
If you have not paid your rent on time, you are in breach of your lease. This happens automatically and immediately without the landlord needing to send you any notice to tell you that you are in breach.
This is stipulated in your lease. If you are doing an EFT, the money must reach the landlord’s bank account by the appointed date. You are still in breach of your lease if you have instructed that payment be made, but the payment has not reached the landlord’s account by the appointed date, or if you have made the transfer from one bank but the payment has not yet reached the landlord’s account by the appointed date because he banks with another bank.
Place for payment
You need to make payment to the landlord’s nominated account. Making payment into any other account or to any other person (for example, paying a plumber to do something that you wanted the landlord to do for you, or paying into the municipality’s account) does not count as payment to the landlord. Payment to a body corporate instead of the landlord, or to a hijacker or a “tenants’ committee” does not count as payment to the landlord.
Manner of payment
If you make payment in any manner other than those permitted by the lease (for example, if you are required to pay into the landlord’s bank account but you deposit cash into his account instead), you are breaching the lease. If you deposit cash directly into the landlord’s account, or you give the landlord cash, then you will likely be held liable for the cash deposit fees.
Penalties for late payment
The landlord is not legally entitled to charge you any amount as a penalty, other than interest, for late payment. However, there are a number of other courses of action that the landlord might take if you pay late...
Breach of lease
If you have not paid your rent on time, you are in breach of your lease. This happens automatically and immediately without the landlord needing to send you any notice to tell you that you are in breach.
