Although within the meaning of the law, the lessor has the right to make the tenant liable for a “reasonable penalty” for the early termination of the rental agreement; it is not intended and is not intended to punish tenants; but rather allow the lessor to make good any damage he has suffered as a result of the early termination of the lease; and the tenant who does the cleaning before the lease has begun. There are many reasons why a lease can be terminated prematurely. Whatever the reasons, all are subject to the Consumer Protection Act (CPA) and the Rental Housing Act (RHA), and both are covered by South African law. Let`s look at the reasons and implications for it. If a tenant terminates their lease before it expires, most serious rental agents comply with section 14 of the CPA. This should be provided for in their rental agreement. This stipulates that the landlord has the right to charge a cancellation fee in the amount of two months` rent if the termination is still filed with more than six months of the lease. If you stay less than six months, the landlord can request a cancellation penalty of one month. Once the cancellation is complete, the tenant must leave the premises in a condition acceptable to the lessor. Once the lessor or its broker has received the written termination, they must note the date on which the lease must now end; and should immediately begin advertising for a new tenant for the property. This responsibility rests directly on the shoulders of the landlord or his agent to find a suitable new tenant. However, the cost of such advertising should also be taken into account, as these costs may be charged to the tenant as part of the “reasonable penalty” for which the lessor is entitled to hold the tenant liable; following the early termination of his lease.

The tenant or lessor may terminate the rental agreement prematurely, provided that the termination corresponds to both the CPA and the RHA. Tenants prematurely terminate their leases for many reasons. This could be due to family death, health problems, reductions, relocation or emigration, to name a few. But whatever the reason, cancellation is allowed, provided that both parties agree. This will be facilitated if the tenant and the lessor have included in the rental agreement a termination clause that allows early termination on acceptable terms. However, if no clause is included in the lease agreement or if both parties do not fully agree, the status of the CPA or RHA applies. Here tenants will find all the necessary documents for rental contracts, cancellations and more. on this basis; Penalty clauses in rental agreements that purport to agree on a cancellation fine in advance simply won`t hold up in court.

“Hi Hugh, I am bound by a five-year lease in a shopping mall in Pretoria. I have a small business that is the real tenant, and I signed a bond. The owner is a large real estate company. My business is losing money every month and I have done my best to negotiate my release of the lease, but the landlord will not move….