How to Be a Landlord in South Africa: Beginner's Guide 2026

So you’ve bought (or are about to buy) a property and plan to rent it out. Congratulations — rental property is one of South Africa’s most reliable wealth-building strategies when done right. But “when done right” is doing heavy lifting in that sentence.

Being a landlord is part investor, part property manager, part amateur lawyer, and part customer service agent. This guide walks you through every step — from preparing your property to finding tenants, collecting rent, and staying on the right side of the law.

Step 1: Get Your Finances Right

Before you list a single ad, make sure the numbers work.

Understand Your Costs

Owning a rental property costs more than just the bond repayment. Your monthly expenses will include:

Bond repayment (principal + interest)
Municipal rates and taxes
Body corporate or HOA levies (sectional title or estate)
Insurance (building, landlord liability, optionally contents)
Maintenance reserve (budget 8-10% of annual rent)
Management fees (if using an agent or platform)
Vacancy allowance (budget for at least one month per year with no tenant)

Run the Numbers

Calculate your expected net rental yield before committing to a property:

Net Yield = ((Annual Rent − Annual Expenses) ÷ Property Value) × 100

If the yield is below 3-4% net, the investment may not be worthwhile unless you’re banking on strong capital growth. Our rental yield calculator guide walks through the full calculation with examples.

Set Up a Separate Bank Account

Open a dedicated bank account for your rental property. All rental income goes in, all property expenses come out. This makes bookkeeping straightforward and tax reporting painless.

You’ll also need a separate interest-bearing account for the tenant’s deposit — this is a legal requirement under the Rental Housing Act.

Step 2: Prepare Your Property

A well-prepared property attracts better tenants and commands higher rent.

Safety and Compliance

Before listing, ensure your property meets these baseline requirements:

Electrical Certificate of Compliance (CoC) — required when a new tenant moves in
Gas Certificate of Compliance (if gas appliances are installed)
Smoke detectors — not yet legally required in all provinces but strongly recommended
Burglar bars, security gates — essential for insurance claims and tenant safety
Working locks on all doors and windows

Condition and Presentation

Fix everything that’s broken before listing — dripping taps, cracked tiles, faulty lights
Paint in neutral colours if the property looks tired
Ensure all appliances included in the lease are in working order
Clean professionally before photographing and showing
Photograph extensively (these photos also serve as your baseline condition record)

Decide What’s Included

Be explicit about what’s included and what’s not:

Is the property furnished or unfurnished?
Are appliances included (stove, fridge, washing machine, dishwasher)?
Is a garden service included?
Are utilities included or charged separately?
Is parking included? How many bays?

Document everything in the lease agreement.

Step 3: Set the Right Rent

Pricing your rental correctly is critical. Too high and it sits vacant. Too low and you leave money on the table for years (rent increases are typically 8-10% annually at most).

Research Comparable Rentals

Look at what similar properties in your area are listed for:

Check Property24, Private Property, and Facebook Marketplace
Filter by suburb, bedroom count, and property type
Note how long listings have been active — listings sitting for weeks may be overpriced

For current market data, see our guide to average rents in Cape Town, Johannesburg, and Durban.

Factor In Your Costs

Your rent must at minimum cover your bond repayment, rates, levies, insurance, and maintenance. If it doesn’t, you’re subsidising your tenant’s housing.

Consider Demand

University areas have cyclical demand (high in Jan-Feb, low in Dec)
Corporate areas may have steadier year-round demand
Holiday areas may have seasonal premiums

Step 4: Find and Screen Tenants

This is where most landlord problems begin — and where they can be prevented.

Advertising

List your property on multiple platforms:

Property24 and Private Property (the largest SA rental portals)
Facebook Marketplace and local community groups
Gumtree (still active for certain areas)
Your letting agent’s database (if applicable)

Use high-quality photos, write detailed descriptions, and be transparent about rent, deposit, and what’s included.

Screening — Don’t Skip This

The single most important thing you can do as a landlord is screen every applicant thoroughly. A good tenant pays on time, looks after your property, and renews their lease. A bad tenant costs you tens of thousands in arrears, damages, and legal fees.

At minimum, run these checks:

Credit check (through TPN, TransUnion, or Experian)
ID verification (South African ID or valid work permit)
Employment and income verification (request 3 months’ payslips and bank statements)
Affordability check (rent should be less than 30% of gross income)
Previous landlord references (call them — don’t just accept written letters)

Before running any credit or background checks, you must obtain the applicant’s written POPIA consent. This is a legal requirement.

For a detailed walkthrough, see our complete tenant screening guide.

Trust Your Screening

If the numbers don’t add up — if the applicant’s income doesn’t support the rent, their credit history shows defaults, or their references are vague — don’t let desperation fill a vacancy override your judgment. The cost of a bad tenant always exceeds the cost of an extra month’s vacancy.

Step 5: Get the Lease Right

A written lease agreement is your most important protection as a landlord. While oral agreements are technically valid under South African law, they’re virtually impossible to enforce.

What Must Be in the Lease

The Rental Housing Act requires certain information in every lease:

Full names and ID numbers of landlord and tenant
Property address and description
Monthly rental amount and due date
Deposit amount and where it will be held
Lease term (fixed or month-to-month)
Notice period for termination
Obligations of both parties (maintenance, repairs, conduct)
House rules (if applicable — especially in sectional title)

What Should Be in the Lease

Beyond the legal requirements, include:

Escalation clause — annual rent increase (typically 8-10%, agreed upfront)
Permitted use — residential only, no subletting without permission
Maintenance responsibilities — who handles what (e.g., tenant handles minor repairs under R500)
Pet policy — allowed or not, and under what conditions
Inspection rights — your right to inspect with reasonable notice (24 hours is standard)
Breach and remedy clause — what constitutes a breach and how much notice the tenant gets to remedy it
Cancellation clause — early termination terms

Joint Incoming Inspection

Before the tenant moves in, conduct a joint incoming inspection and document the property’s condition in writing, with photographs. Both parties sign the inspection report. This protects you when the tenant moves out and you need to assess whether damage occurred.

This inspection is also legally required before you can make any deductions from the deposit.

Step 6: Manage the Tenancy

Once the tenant is in, your job shifts to ongoing management.

Rent Collection

Set a clear payment date (the 1st of the month is standard)
Provide your banking details and request proof of payment
Follow up on late payments immediately — don’t let arrears build
Send a formal written notice if rent is more than 7 days late
Consider using a platform that automates collection and tracks payments

Maintenance

You are legally obligated to maintain the property in a habitable condition. This means:

Structural integrity (roof, walls, floors)
Working plumbing and electrical systems
Functioning fixtures included in the lease
Safety features (locks, security)

Respond to maintenance requests promptly. A tenant who reports a leak that you ignore for weeks will justifiably feel aggrieved — and the leak will cause far more expensive damage.

Pro tip: Schedule at least one formal property inspection per year (with 24 hours’ notice). Catch small issues before they become big ones.

Annual Rent Increases

You may increase rent once per year, typically at lease renewal. The increase should be:

Specified in the original lease (escalation clause)
Reasonable and in line with market rates
Communicated in writing with adequate notice

There’s no legal cap on rent increases in South Africa, but increases significantly above inflation risk losing a good tenant — and vacancy is expensive.

Dealing with Problem Tenants

Despite your best screening efforts, problems can arise:

Late payments: Follow up immediately. Send formal written notice. If persistent, begin the legal process early
Property damage: Document with photos, notify the tenant in writing, and address through the deposit or insurance if necessary
Lease violations: Issue a written breach notice specifying the violation and giving reasonable time to remedy (typically 20 business days)
Illegal activity: Consult an attorney immediately

Never resort to self-help eviction — changing locks, cutting services, or physically removing a tenant is illegal under the PIE Act and can result in criminal charges against you.

Step 7: Stay Compliant

South African landlords must comply with several pieces of legislation:

Rental Housing Act (Act 50 of 1999)

The foundational law governing residential tenancies:

Written lease required (practically, if not technically)
Deposit must be held in an interest-bearing account
Joint inspections at move-in and move-out
24-hour notice before inspections
Maintain property in habitable condition

POPIA (Protection of Personal Information Act)

Applies whenever you collect tenant data (credit checks, ID copies, payslips):

Obtain written consent before processing personal information
Store data securely
Don’t keep data longer than necessary
Give tenants access to their information on request

PIE Act (Prevention of Illegal Eviction Act)

Governs the eviction process:

No self-help evictions — ever
Court order required for all evictions
Specific procedural requirements depending on tenant circumstances

Consumer Protection Act

Applies to lease agreements in certain circumstances:

Tenants may have the right to cancel a fixed-term lease with 20 business days’ notice (subject to a reasonable penalty)
Unfair contract terms may be unenforceable

Step 8: Handle Your Tax Obligations

Rental income is taxable. You must declare it to SARS, even if your expenses exceed your income (because the loss offsets other tax).

Key requirements:

Declare all rental income on your ITR12 return
Claim all allowable deductions (bond interest, rates, maintenance, fees, etc.)
Keep records for 5 years
Register as a provisional taxpayer if required

For the full breakdown, see our rental income tax guide for landlords and our complete list of landlord tax deductions.

Step 9: Plan for the Long Term

Successful landlords think beyond the current lease.

Build a Maintenance Reserve

Set aside 8-10% of annual rental income for maintenance and repairs. Geysers burst, roofs leak, and appliances break — always at the worst possible time.

Review Your Portfolio Annually

Is the property still delivering competitive yield?
Should you increase rent, reduce costs, or sell?
Are there better opportunities elsewhere?

Consider Scaling

Once you’re comfortable with one property, you might consider adding more. Each additional property has less marginal management effort — especially if you use a platform that centralises everything.

Keep Learning

The regulatory landscape changes. Tax rules evolve. Market conditions shift. Stay informed by reading industry resources, attending landlord forums, and following platforms like Indlu that publish regular guides and market updates.

The Landlord’s Toolkit — What You Need

At minimum, you need:

A compliant lease agreement
A tenant screening process (credit check, references, affordability)
A deposit account (separate, interest-bearing)
A record-keeping system (income, expenses, inspections, correspondence)
A maintenance response process
A rent collection system

You can cobble this together with spreadsheets, individual service providers, and manual processes. Or you can use a platform that handles all of it from one dashboard.

Indlu gives you tenant screening, lease generation, rent tracking, expense management, compliance tools, and financial reporting — starting free for your first property and from R99/mo for the Starter plan.

Everything you need as a new landlord — start free with Indlu. Get started today.