“The monthly rent payable during the extension period is a market-related rent, as agreed in writing between the parties, provided that the agreement, rent and subsequent escalation rate are not set by an independent expert. This independent expert is appointed by written agreement between the parties and, if not, by [the Chief Executive Officer of the South African Institute of Valuers]. The independent expert acts as an expert and not as an arbitrator, and his decision is final and binding on the parties. There are both pros and cons to renewing a lease with a current customer, so you need to think about it before making snap decisions. Just make sure you decide within a reasonable time. Their tenants deserve the chance to find a new place to live or relax, knowing that they will stay for another year or something like that. Not only do you secure your cash flow and save money if you extend a lease, you also save time. Consider all the steps to find a new tenant: advertising for the property, sorting applications, meeting with potential tenants and thorough verification. Renewing a lease can be a much simpler process.

Second, the judgment emphasizes that it is absolutely essential that renewal clauses be developed with great care in leases. The parties must either provide an agreed and fixed rent applicable in the event of a renewal, or, if they have the rent determined at the time of the extension, they must provide a deadlock-break mechanism. Landlords need to be aware of their government laws and respect them when it comes to managing their tenants. They should communicate clearly their intentions with their tenants, who issue a lot of co-opinions, so that no one is in an uncomfortable situation. It is customary for the landlord and tenant to insert a renewal clause into a tenancy agreement. Such a clause generally allows a tenant to extend the term of the tenancy by an additional period on the same terms as the original term. Finding a new client and signing a new lease can be stressful. One way to minimize this stress is to keep tenants reliable with a rent extension. If your current tenant pays the rent on time and maintains the property, why look for a new one? Don`t get into the uncertainty that comes with finding a new tenant if you`re already renting to someone who`s reliable.