The Landlord’s Manual to Properly Let Immovable Property in Zimbabwe

Authored by Urayayi Chikwetu

Introduction

If you are an owner of immovable property, a question may time and again pop up related things to consider when preparing to rent out your immovable property. There are a number of factors to take into account. The most crucial element is that you must create a legal and organized lease. Only when the lease agreement is reduced to paper can this be accomplished. The discussion will deal with each factor in turn below.

The importance of written lease agreement

It is common cause that contracts under Zimbabwean law need not  to be written, however it is wise and advantageous to have a written lease agreement. The benefit of having the lease agreement reduced into writing is that it will be simple to refer to it anytime a problem arises. This must be viewed as a precious piece of evidence, that is  , it will contain a clear record of what the parties agreed to, which will prove handy when disputes arise, hence the need to have it crafted by those who are schooled in this arena, that is, lawyers.

Knowing the duties of a tenant

The landlord must be aware of the duties of a tenant for the purpose of being able to check compliance. The tenant has certain duties which, if he or she fails to perform them, will cause him or her to breach the contract. The duties of the tenant include among other things the duty to pay the rent, the duty to use the rented property in a proper manner, the duty to restore the property to the lessor on the termination of the lease and the duty to  carry out any special obligations imposed on him or her by the agreement of lease.

Check the suitability of your tenants

Make sure potential tenants can afford the rent before you sign the lease by screening them first. This should be done by filling out forms from all interested parties with their personal information, income status, next of kin, so that you may run background and credit checks and follow up with provided references. If these checks are not done , this may result in a variety of issues down the road, including missed or late rent payments and property damage.

Subletting and other Matters

As a landlord you need to clarify your stance on subletting, pets like dogs and cats, and other behaviour on the leased property, to avoid problems with the lessee  . Once this has been clearly clarified , the lessee will not be heard when he or she later assert ignorance of the requirements after this is made explicit in a lease agreement  that he or she has signed .

Consequences for violating the terms of the lease

An unavoidable question to ask is related to what would happen if the lessee violates the conditions of the lease, and this must be included in the lease agreement. The sanctions need to be clearly spelled out. Will the Lessee be required to continue pay the rent, or as a landlord do want to reserve the right to terminate the contract . The issues of interest to be charged where the tenant misses must be spelled out in the agreement.

Know Your Tenant Checks

It is wise to gather all the data you can from your potential tenant. This is part of due diligence referred to as the "Know Your Tenant Checks" process. Make it an unavoidable practice to collect as much information as you can about where you will meet tenant when he or she  leaves your property. This can be achieved by including in the lease contract facts about the next of kin, the employer, if any, the place of worship, if any, contact information for the parents. This information will be useful later on.Even if you manage to include whatever conditions in your lease contract , they cannot be enforced without a written agreement. Finding a tenant who will pay their rent and starting to collect it is not sufficient. It is prudent to screen your tenants, independently check their information and references, and then put your agreement in paper and get it signed by all sides.

Other important matters to take into account on leases

It is undisputed fact that a properly written lease agreement between a landlord and any tenant, may end up saving you money and worry in the long run. Some potential thorny issues such payment deadlines, who responsible for some utility bills, whether the bills paid include rates as well, who is liable for repairs to the structure or fittings to which repairs, among other things, should preferably be covered in the agreement.

To allow the owner to assess the tenant's ability to pay rent and adherence to lease terms, it is best to grant a shorter lease period in the beginning, thereafter the lease agreement may be for longer period where the assessment was positive.

At the same time, it is advisable for a residential property owner to make sure the lessee is still occupying the property when the residential lease agreement expires. The tenant can turn out to be a statutory tenant as a result of this circumstance. In simple terms, a  statutory  tenant is a tenant who continues to live in a residential property and make rental payments after the lease has expired .

The difficulty with a statutory tenancy is that you are only permitted to dismiss this tenant from the home if you can demonstrate that you need to use your property. You need the Rent Board's approval to evict someone. A statutory tenant creates problems for the landlord in that it will be difficulty to evict him or her for any other reason other than that you want to use the property yourself. The eviction needs the approval of the Rent Board.

Furthermore, it is crucial for the landlord to clarify the conditions of the lease and the security deposit requirements. Thus, the lease agreement must expressly outline expected payments, which include among other things, the date that rent is due, period of payment, method of payment, location of payment, and fines or penalties for missed or late payments

As regards the amount of the security deposit needed after the tenant started occupying the property, the agreement must explicitly state the  amount of deposit required. An agreement may call for a security deposit that is significantly greater than one month's worth of rent, depending on the state of the property and the parties' understanding. As the name implies, a security deposit serves as insurance against lessee’ damage to the lessor's property. It is important to keep in mind that some tenants do damage to the property and surreptitiously leave the premises, costing the property owner money. As a result, be clear about your security deposit as well as what constitutes property damage.

To the reader

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Urayayi Chikwetu is a registered Legal Practitioner and can be contacted on 0713 569 986

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. This is not legal advice. Specialist legal advice should be sought about your specific circumstances.