Featuring insights from Cilna Steyn, Managing Director at SBL Incorporated
Lease agreements are meant to protect rental agencies. But in practice, they’re often doing the opposite.
In an effort to cover every possible scenario, many agencies rely on long, generic lease templates packed with dense legal language, overlapping clauses, and outdated provisions. Instead of reducing risk, these documents create confusion - and in many cases, they’re the very reason agencies find themselves dragged into disputes at the Rental Housing Tribunal.
The uncomfortable truth? Complexity doesn’t equal protection. And in today’s regulatory environment, it can be costly.
When “covering all bases” backfires
According to Cilna Steyn, overly complex leases are one of the most common - and avoidable - risk factors in rental management.
“Too many agencies still rely on one-size-fits-all templates packed with irrelevant clauses,” she explains. “These clauses are often added incrementally, without reviewing the document as a whole. The result is a bulky, confusing lease that even lawyers struggle to navigate.”
Instead of clarity, these documents introduce ambiguity. Conflicting clauses open the door to interpretation, disputes, and ultimately litigation. When disagreements escalate to the Rental Housing Tribunal, it’s usually the agent who absorbs the cost - not just financially, but in time, stress, and reputational damage.
The hidden cost: unpaid hours and reputational risk
Rental agents already juggle viewings, negotiations, tenant vetting, landlord communication, and administration. Expecting them to fully interpret pages of legal jargon - often under time pressure - is unrealistic.
When leases aren’t clear:
- Disputes take longer to resolve
- Agents spend unpaid hours preparing for hearings
- Tribunal outcomes can damage trust with both landlords and tenants
Over time, this erodes confidence in the agency’s professionalism, even when the root cause is a poorly constructed lease.
Why simpler, clearer leases reduce disputes
South African legislation increasingly reinforces the need for clarity. The Consumer Protection Act requires contracts to be written in plain language, while the Property Practitioners Act places a duty on agents to act fairly and ensure tenants understand what they’re signing.
Simpler leases:
- Reduce misunderstandings
- Set clearer expectations for both parties
- Lower the likelihood of disputes escalating
- Are easier for agents to explain and administer
The challenge, of course, is creating leases that are both legally sound and easy to understand - without adding more admin to an already heavy workload.
Where technology can help (without replacing legal expertise)
This is where modern, purpose-built technology starts to play a meaningful role.
As Cilna notes, intelligent systems can:
- Translate legal jargon into plain language summaries
- Flag contradictions, missing clauses, or risky wording
- Ensure agreements remain aligned with current legislation
- Reduce reliance on outdated, generic templates
“AI can highlight issues before a lease is signed - not after it becomes a problem,” she explains. “That alone can dramatically reduce the risk of disputes.”
That said, technology isn’t a replacement for legal expertise. Left unchecked, automation can simply generate bad leases faster. The real value lies in combining intelligent tools with legal oversight - allowing lawyers, agents, and administrators to work more efficiently together.
Towards agile, property-specific leases
The next evolution in rental management is moving away from static templates altogether.
Instead of duplicating the same information across mandates, applications, inspection reports, and leases, modern platforms can consolidate data and build agreements specific to each property and tenancy. The result is:
- Less repetition
- Fewer errors
- Greater consistency
- Built-in compliance
Agile leases focus only on what’s relevant - no padding, no unnecessary clauses, no ambiguity.
Protecting relationships, not replacing them
The rental industry has always been driven by human relationships. Technology shouldn’t replace that - it should protect it.
When administrative processes and documentation run smoothly in the background, agents can focus on what actually grows a rental book: trust, communication, and service.
As Cilna puts it, applying automation to leases is simply the natural next step - freeing agents to focus on the work that really matters.
The bottom line
If there’s one change rental agencies can make to reduce disputes, cut unpaid hours, and improve compliance, it’s this:
Simplify your leases. Make them clearer, more agile, and supported by the right technology.
The tools to do this already exist - and the cost of doing nothing is far higher than most agencies realise.
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