Mandatory Written Leases: The 2025 Rental Housing Amendment
Verbal lease agreements are no longer legally sufficient. New amendments require written contracts and stricter deposit handling.
The days of "handshake agreements" for renting property are over. The latest amendments to the Rental Housing Act, effective in 2025, have introduced strict new compliance requirements for landlords.
Written Leases are Mandatory
Previously, a written lease was only required if a tenant requested one. Now, all lease agreements must be in writing. Failure to provide a written lease is a criminal offense punishable by a fine or imprisonment.
Interest on Deposits
The amendments clarify that landlords must invest the tenant's security deposit in an interest-bearing account. Tenants have the right to request written proof of this investment. Using a tenant's deposit for personal cash flow is strictly prohibited.
Ilse Marlow, our specialist in Property Law, advises all landlords to act immediately. "If you are renting out a property without a compliant written contract, you are exposed to significant legal risk."