28 August 2025
When a lease agreement in South Africa comes to an end, landlords and tenants often ask the same question: How do we renew, and what does the law say?
The answer lies in the Rental Housing Act and the Consumer Protection Act (CPA), both of which aim to ensure fair treatment of both parties:
Understanding Lease Renewal Under the CPA
The Consumer Protection Act (CPA) applies to most residential leases where the tenant is an individual. It sets out how renewals and terminations must be handled:
- Maximum Initial Lease Term
The CPA limits fixed-term contracts (including leases) to 24 months, unless
the landlord can show a valid reason for a longer lease.
- Notice Before Expiry
Landlords (or their agents) must give tenants 40 to 80 business days’ written
notice before the lease expires.This notice must tell the tenant the lease is
ending, and give them the choice to renew or move out.
- Tenant’s Choice
The tenant can agree to renew, negotiate new terms, or decide not to renew.
- Automatic Month-to-Month Renewal
If the tenant does nothing but stays on and keeps paying rent, the lease
automatically continues on a month-to-month basis. When the lease is on a
month-to-month basis, CPA will no longer apply.
What If There Is No Renewal Clause?
Not all lease agreements have a renewal clause. When this happens, the following outcomes are possible:
- Lease Runs Its Course
Once the fixed term ends, the lease simply terminates. Unless both parties agree otherwise. - Month-to-Month Continuation (Tacit Relocation)
If the tenant remains in the property and the landlord keeps accepting rent, the lease automatically rolls over to a month-to-month agreement, on the same terms and conditions as the original lease, except the notice period will now be 1 calendar’s month notice by either party. - Renegotiation Opportunity
Without a renewal clause, neither party is bound to extend the lease on the same terms. This creates room for new negotiations such as a higher rental, updated maintenance obligations, or different lease periods.
Steps for a Smooth Renewal
- Review the Current Lease – Check if a renewal clause exists and what it requires.
- Discuss Rental Adjustments – Any increase must be reasonable and market-related.
- Provide Written Renewal Offer – The landlord must formally notify the tenant of expiry and renewal options (CPA requirement).
- Sign a new Lease Agreement or a Renewal Addendum – Put the new term in writing to avoid disputes.
- Update Deposits if Needed – If rent increases, the deposit should be topped up accordingly.
Why Written Renewal Matters
Even if a lease rolls over automatically, relying on a month-to-month arrangement can be risky:
- Tenants may face sudden termination on 1 calendar’s month notice.
- Landlords may lose security of longer-term income if tenants decide to leave unexpectedly.
A written Renewal addendum or Lease Agreement provides stability and certainty for both sides.
Key Takeaways
- The CPA protects tenants by requiring 40–80 business days’ notice before expiry.
- If no renewal clause exists, the lease can end, be renegotiated, or automatically continue month-to-month.
- Written renewals are always best practice — they protect deposits, confirm fair rental increases, and give both landlord and tenant certainty.
Bottom line: Even without a renewal clause, landlords and tenants are not left unprotected but relying on tacit relocation can be risky. A written renewal agreement is always the safest option.
At Rawson Rentals, tenants and landlords have access to professional guidance for lease renewals, ensuring compliance with the CPA and Rental Housing Act. Our experienced agents can assist with drafting written renewal agreements, negotiating fair rental adjustments, and managing deposits efficiently.
Ready to Simplify Your Lease Renewal? Explore our Rawson Rentals offerings today and let our experts guide you through a smooth, stress-free lease renewal process.
