Vukani* has been renting out his Cape Town house to a troublesome tenant who last paid rent in 2019 and is struggling to evict her.
Vukani decided to let the property four years ago when he secured a job in Tshwane.
“I was not going to afford to pay for two properties so I decided to rather rent out the Cape Town one and allow it to pay itself off. My plan was to use it as an investment but I wasn't ready for what this tenant put me through. She doesn't pay rent and I constantly have to send people to fix the property because of the breakages. I'm struggling to manage the situation because of the distance and I also want to evict the tenant,” said Vukani.
Paul Stevens, CEO of Just Property said as the rental market becomes more competitive, first-time landlords face real challenges in tenant selection, compliance, digital marketing, and managing energy-conscious tenants. Stepping into the rental market as a first-time property investor in 2025 offers significant opportunities, but it also comes with challenges. With evolving tenant expectations, an updated legal framework and increasing competition among landlords, success demands knowledge, preparation and professionalism.
“The foundation of a good landlord-tenant relationship is a clear understanding of SA rental law. The Rental Housing Act 50 of 1999 (RHA), with its amendments, remains the guiding legislation for residential renting in SA.”
“Compliance with the law is not up for negotiations and some of the key legal obligations include a written lease agreement for all rental arrangements, clearly outlining rental amounts, deposits, maintenance responsibilities, notice periods and termination clauses. As the landlord you are required to secure the tenants deposit into interest-bearing accounts and return it, less any justified deductions, within seven to 14 days after lease termination,” said Stevens.
She doesn't pay rent and I constantly have to send people to fix the property because of the breakages. I'm struggling to manage the situation because of the distance and I also want to evict the tenant
— Vukani
The landlord is responsible for ensuring the property is safe, habitable, and structurally sound. Urgent repairs must be addressed promptly.
The Rental Housing Tribunals, which are available in most provinces, provide a free and effective forum for resolving disputes.
“Being a landlord requires solid financial planning beyond covering the bond repayment on your investment property. New investors often underestimate the hidden costs involved with purchasing a property and renting it out,” explained Stevens.
He said municipal rates and levies must be factored into monthly budgeting and this also includes insurance to protect yourself against tenant defaults, property damage and liability claims.
Maintenance is also key for the regular upkeep of the property and ensuring tenant satisfaction.
“Also keep in mind of the professional management fees. Many first-time landlords underestimate the value of working with a property manager to handle leasing, collections, inspections and legal compliance,” said Stevens.
Tax obligations cannot be overlooked. Rental income must be declared to Sars, and expenses related to property management, maintenance and improvements may be deducted.
Tenant selection is the outmost crucial part of property investment and Stevens suggested stringent screening and checks such as credit checks, employment verification and previous rental references. “A good tenant can make your rental experience effortless; a poor tenant can be costly,” he said.
- Be fair and non-discriminatory: Adhere to the principles of SA’s Consumer Protection Act and the Equality Act.
- Use a proper vetting process: A structured, documented approach protects landlords from claims of bias and supports sound decision-making.
“The rental market has evolved, and so must landlords. According to our latest marketing insights, tenants are searching online more than ever, using mobile devices, and expecting rapid, professional responses,” said Stevens.
To attract quality tenants:
- Advertise on the property portals. Property24 and PrivateProperty are SA’s leading property portals. You will need to create an account, and a fee will be charged for listing your property on each portal.
- Invest in professional photographs and listings: A well-presented property gets more enquiries.
- Price competitively: Research current market rates to ensure your rental is attractive.
- Highlight desirable features: Security, energy efficiency, fibre connectivity and modern finishes all appeal to today’s tenants.
“Becoming a landlord is an exciting and rewarding venture if approached correctly. Understanding your legal responsibilities, managing your finances prudently, selecting the right tenants, marketing effectively and staying ahead of market trends are key to success,” said Stevens.
*Not his real name
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