Key rental laws every South African landlord and tenant should understand

Rentals

   

lease-renting-contract-residential-tenant-concept-ezgif.com-webp-to-jpg-converter

25 September 2025

South Africa’s rental market is full of opportunities – and a few legal pitfalls if you don’t know the rules. From how deposits should be handled, to when rent can be increased, to the correct process for ending a lease, the law is there to protect both landlords and tenants. The trick is knowing what it actually says.

Jacqui Savage, National Rentals Manager for the Rawson Property Group, says most rental disputes come down to misunderstandings of these rules.

“It’s not about landlords versus tenants,” she explains. “It’s about making sure everyone understands their rights and responsibilities. When you get that right, the rental process runs far more smoothly for both sides.”

Whether you’re renting out your first property or moving into a new home, these are the key rental laws worth knowing – explained in plain English, with practical tips to help keep your rental experience fair, legal, and hassle-free.

Lease agreements
In South Africa, the Rental Housing Act says a lease can be verbal or written – but having it in writing is a vastly safer route for both parties. A written lease sets out the rent amount, payment terms, maintenance responsibilities, duration of the agreement, and how it can be renewed or ended.

Jacqui Savage says skipping this step is one of the quickest ways to land in a dispute.Jacqui
“Without a clear agreement, you’re relying on memory and goodwill, and that’s risky,” she explains. “A written lease doesn’t just protect you legally; it gives everyone a shared reference point if questions or problems come up.”

Even if you trust the other party completely, putting the details on paper avoids confusion and keeps the rental relationship professional from the start.

Deposits
A security deposit is standard practice in South African rentals, usually equal to one or two months’ rent. By law, landlords must place this money in an interest-bearing account for the duration of the lease. When the tenant moves out, the deposit – plus any interest earned – must be refunded, minus the cost of repairing any damages beyond normal wear and tear.

“It’s not the landlord’s money to spend,” says Savage. “It’s held in trust for the tenant, and it needs to be treated that way. Tenants are entitled to see proof of where their deposit is kept and how much interest it has earned.”

If repairs are needed, the costs must be backed up with invoices or quotes. Anything not supported by evidence is not a valid deduction. For tenants, keeping the property in good condition – and documenting it with photos – is the best way to ensure you get your full deposit back.

Entry and exit inspections
The law requires landlords and tenants to do a joint inspection before moving in, and again when moving out. These inspections record the property’s condition and form the basis for any deposit deductions.

“If you skip the inspection, you’re essentially giving up your legal safety net,” warns Savage. “For landlords, it’s your evidence if you need to claim for damages. For tenants, it’s your proof that you left the property the way you found it.”

Many tenants don’t realise how important it is to attend both inspections. The incoming inspection is your chance to note any existing wear and tear so you can’t be held responsible for it later, while the outgoing inspection ensures you can see and discuss any claims before your deposit is finalised. Both parties should sign the inspection report and keep a copy. Photos or videos taken during the process add an extra layer of security and can make all the difference if there’s a dispute.

Maintenance and repairs
The law makes a clear distinction between a landlord’s responsibility to keep the property in a habitable condition and a tenant’s duty to take care of day-to-day upkeep.
 “If the roof leaks or the geyser bursts, that’s on the landlord,” says Savage. “If a lightbulb blows or the garden needs weeding, that’s on the tenant.”

A good lease will spell out these responsibilities in detail to avoid arguments later. Landlords should attend to repairs promptly, and tenants should report problems as soon as they notice them – in writing – to prevent further damage.

Delays in reporting can leave tenants liable for additional costs if the issue gets worse, while delays in fixing essential problems can leave landlords in breach of the lease and even the Rental Housing Act.

Rent increases
In South Africa, there’s no fixed national limit on how much rent can be increased, but the law says increases must be fair and in line with market trends. Rental increases are agreed to at the signing of the lease stage and recorded in the lease agreement, so there is no disputes at the renewal stage. Rental increases occur at the renewal stage.
Landlords also need to give tenants ample notice at least 40 to 80 days written notice before the new rent takes effect.

 “A sudden, unreasonable hike is a quick way to lose a good tenant,” says Savage. “Base your increase on realistic market data and inflation – not just on what you’d like to earn.”

Evictions
Even if a tenant stops paying rent or breaks the lease, a landlord cannot simply change the locks, cut off utilities, or remove their belongings. The Prevention of Illegal Eviction (PIE) Act requires all evictions to go through the courts.

“It’s tempting to act quickly when you’re losing rental income, but taking matters into your own hands can land you in serious legal trouble,” warns Savage. “The eviction process exists to protect everyone’s rights, and it must be followed step-by-step.”
This means giving proper written notice, applying to court, and allowing a judge to grant the eviction order. Skipping these steps can result in fines, compensation claims, or even criminal charges.

Early termination
Under the Consumer Protection Act, a tenant can cancel a fixed-term lease early by giving 20 business days’ written notice. The landlord can charge a reasonable cancellation penalty, but it can’t be so high that it becomes punitive.
“This is one of the most misunderstood rules,” says Savage. “Tenants often think they can walk away with no consequences, and landlords sometimes try to claim the full remaining rent – both are wrong.”

A reasonable penalty usually covers actual losses, such as lost rental income while the property is vacant, advertising costs, or agent fees for finding a new tenant. Being fair and transparent about these costs helps maintain a good relationship – even if the lease ends sooner than planned.

Communication
While legislation sets the rules, good communication is what keeps most rental relationships running smoothly. Problems tend to escalate when one party keeps quiet or makes assumptions.

“Legal knowledge is essential, but so is mutual respect,” says Savage. “If something goes wrong, raise it early. A willing conversation can solve what a courtroom can’t.”

Whether it’s reporting a repair, querying a rent increase, or discussing notice periods, putting it in writing creates a clear record – and following up with a phone call or meeting often speeds up resolution. Open, respectful communication can save both landlords and tenants a lot of time, money, and frustration.

Understanding South Africa’s rental laws isn’t about memorising legal jargon. It’s about knowing the basics that keep rental relationships fair, professional, and stress-free. For Jacqui Savage, it all comes down to balance.

“The law isn’t there to favour landlords or tenants,” she says. “It’s there to make sure both sides are treated fairly. When everyone plays by the same rules, renting becomes a lot simpler – and a lot more pleasant.”

A little knowledge goes a long way. Whether you’re handing over keys or unpacking boxes, being clear on your rights and responsibilities means fewer disputes, faster solutions, and a rental experience that works for everyone involved.

 

 

For more information, email marketing@rawsonproperties.com or visit www.rawson.co.za for the latest market tips and industry news.

Jacqui Savage

Leave a comment