BV
Bronte V

1 reviews | Active since May 2019

11 Jul 2022, 14:44

DEPOSIT THEFT

If i could give 0 star - I would. We had rented a a premises (Vista Verde) through IGROW rentals. We had signed a six month contract but had to unfortunately cancel our agreement after two months due to work relocation.

As per CPA section 14 - we had given the adequate number of days notice and as such 20 business days to cancel our fixed term lease agreement.

Igrow is now holding our deposit of R8000 as a penalty for the cancellation although not legally allowed.

Section 14(2)(b) and (3) of the CPA states that, despite any contrary provision in a lease agreement, the consumer may give 20 working days notice. NO penalties may be app****, except ACTUAL PROVABLE advertising costs for a new tenant. This amount they claim is R1150.

A deposit MAY NOT be retained or withheld unless there was damages (We had none)

We have dealt with Colleen Nielson the portfolio administrator and Bianca Botha the Rentals Manager.

Bianca has blatantly ignored emails and requests for proof of the account and refuses to answer simple questions as she has stipulated countless times they have every right to hold our deposit as a penalty. We have called a number of times for her to return our calls.

What became alarming to us is the fact that she says that it is out of their control as to what happens to our deposit as it is up to the landlord to decide although IGROW holds our money - throwing the landlord under the bus by saying the landlord is hammering Colleen to pay our deposit to the landlord so she can pay her bond. We have email correspondence of her not even knowing who our landlord is as she had kept referring to her (the landlords name is in the lease) as a HIM and after questioning her ************ behaviour in information she is providing us or lack thereof, we again are being ignored.

Our last correspondence is Bianca telling us to go forward with legal action as we have already issued a Summons to IGROW rentals to refund our deposit back.

For anyone that has rented through IGROW Rentals and has had their deposit *******ly withheld after giving the correct number of days notice - i urge you to know your rights and know where you stand.

We have already issued a summons through small claims court and will be perusing the Rental Housing Tribunal as well as laying a complaint through the EAAB.

It has been a disgrace dealing with IGROW and namely Bianca Botha.

I would like an urgent response from either the Owner or at this point ANYONE that will answer our questions.

0
Replies (4)
Igrow Wealth Investments
Igrow Wealth Investments's reply12 Jul 2022, 10:25
Official
Good day 

We will investigate the matter on our side and provide feedback soonest

Kind regards
BV
Bronte V's update13 Jul 2022, 11:07
Reviewer Update
We are yet to receive feedback but i would just like to state the following -

We have taken it upon ourselves to contact the landlord as we have received absolutely nothing in return.

Bianca is also making false claims against us in what i believe is to protect her own self and the correspondences we have received or lack thereof. All phone calls were recorded as well as countless emails as proof.

This has been absolutely ********** dealing with the incompetence of IGrow staff and the matter in which this has been dealt with.
Igrow Wealth Investments
Igrow Wealth Investments's reply18 Jul 2022, 11:13
Official
Good day 

Due to your lease being canceled earlier, you are liable for the cancellation penalties as stipulated in the contract you signed.
The owner of the property was informed, who then confirmed that the situation will be dealt with as stipulated in the signed contract.  
Igrow Wealth Investments
Igrow Wealth Investments's reply19 Jul 2022, 16:52
Official
The cancellation fee you are referring to is the administration fee to place a tenant (R1150). A reasonable cancelation fee, which the landlord may charge, is the loss of income due to a breach of contract. This falls under Regulation 5 of the Consumer Protection Act (CPA). 

In the event that the tenant elects to cancel the lease before the lease would otherwise have ended in the ordinary course, then the landlord is entitled to a “reasonable cancellation penalty”, the guidelines  for which have been provided in Regulation 5 of the Consumer Protection Act. Some landlords simply charge the tenant for  the whole amount that would otherwise have been  owing  in  terms  of  the lease, had it run its full term. This  is not  necessarily  the  correct approach.

Regulation 5 expressly draws the parameters of “reasonableness” in this regard and lists a number of notable factors, including: the length of the notice period by the consumer; the reasonable  length within which the  landlord would be  able to procure  a new tenant; and general practice of the industry. Looking at the factors holistically, it is clear that between one and  two months  rental  would  amount  to  a reasonable penalty, along with any further damages claims and  outstanding  rentals incurred during the course of the lease.