HomeDiscussions

Discussions relating to property rental

 

Automatic continuation of lease period

Aslam
Aslam
Posts: 2


2017/10/28
Aslam
Aslam
Posts: 2
With reference to the item 6 in the TPN residential lease agreement, is it valid to change the automatic continuation period to the same period of the initial lease period (e.g. 12 months) instead of the Month-to-Month clause. If so, what would be the legally accepted wording for such a clause?
TPNLegal
TPNLegal
Administrator
Posts: 60


2018/01/08
TPNLegal
TPNLegal
Administrator
Posts: 60
Hi Aslam,

In terms of section 14 of the CPA, where the Initial Period of a Lease Agreement comes to an end and the Tenant has not communicated the desire to either renew or terminate the Lease Agreement, the Lease Agreement will continue on a month to month basis.

Therefore, I do not suggest you amend clause 6.

Thanks.
Marc Lunau
Marc Lunau
Posts: 420


2018/06/19
Marc Lunau
Marc Lunau
Posts: 420
I think one is obliged to tell the tenants 40-80 business days prior to expiry what the options are once lease expires. Not so?

--
Global Property Investor and Property Manager with value add solutions

www.houses4rent.co.za
mmitche01
mmitche01
Posts: 1


2018/10/08
mmitche01
mmitche01
Posts: 1
Marc Lunau wrote:
I think one is obliged to tell the tenants 40-80 business days prior to expiry what the options are once lease expires. Not so?



If the initial period ends without any communication between the tenant or landlord, I understand that the new month to month basis will include the annual increase as stipulated in the TPN agreement. Could someone confirm this please?