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.
READ: Buying or renting property: Who pays for what?
According to By Paul Stevens, CEO of Just Property this guide is designed to help new landlords understand the current environment, legal obligations, and strategic considerations for building a thriving rental property portfolio.
Understanding the legal framework
The foundation of a good landlord-tenant relationship is a clear understanding of South African rental law. The Rental Housing Act 50 of 1999 (RHA), with its amendments, remains the guiding legislation for residential renting in South Africa. As confirmed by Senior Legal Counsel at TPN, Rowan Terry, compliance is not up for negotiation.
Key legal obligations include:
- Written lease agreements: Required for all rental arrangements, clearly outlining rental amounts, deposits, maintenance responsibilities, notice periods and termination clauses.
- Security deposits: Landlords must place tenant deposits into interest-bearing accounts and return them, less any justified deductions, within 7 to 14 days after lease termination.
- Maintenance obligations: The landlord is responsible for ensuring the property is safe, habitable, and structurally sound. Urgent repairs must be addressed promptly.
The Rental Housing Tribunal provides a free and effective forum for resolving disputes. However, prevention through compliance and good communication is the best strategy.
Financial planning
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.
- Rates, taxes and levies: These municipal charges must be factored into monthly budgeting.
- Insurance: Landlord insurance policies protect against tenant defaults, property damage and liability claims.
- Maintenance: Regular upkeep is crucial for protecting asset value and ensuring tenant satisfaction.
- Professional management fees: Many first-time landlords underestimate the value of working with a property manager to handle leasing, collections, inspections and legal compliance.
Tax obligations cannot be overlooked. Rental income must be declared to SARS, and expenses related to property management, maintenance and improvements may be deducted. Terry emphasises the importance of maintaining accurate records for tax and compliance purposes.
Tenant selection
Choosing the right tenant is one of the most crucial aspects of successful property investment.
- Screen thoroughly: Use credit checks, employment verification and previous rental references. A good tenant can make your rental experience effortless; a poor tenant can be costly.
- Be fair and non-discriminatory: Adhere to the principles of South Africa’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.
Marketing and leasing property in 2025
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.
To attract quality tenants:
- Advertise on the 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.
Emerging trends landlords must know:
Several new dynamics are shaping the 2025 rental landscape:
- Energy-conscious rentals: Load shedding remains an unforeseen reality. Properties with solar installations, gas cooking or backup power solutions command premium rents.
- Flexible leasing options: With remote work being more common, tenants seek flexibility. Offering 6- or 12-month leases, furnished options or pet-friendly policies can widen your market. Make sure the property has a work station if furnished; if unfurnished, market a smaller room as a bedroom/home office.
- Compliance with POPIA: The Protection of Personal Information Act affects how landlords collect and store tenant information. Consent forms and secure data storage practices are now a compliance requirement that cannot be avoided.
There is a LOT to take into consideration. You can certainly do it all yourself, but partnering with a professional property management service like Just Property can make all the difference for first-time landlords.
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.
READ: Top tips for becoming the ideal tenant
"The precise division of responsibilities between a landlord and their tenant – particularly around maintenance – does vary slightly from lease to lease, depending on negotiated conditions,” Savage says. “That said, you usually can’t negotiate away your legal rights and obligations, making it just as important to familiarise yourself with the requirements of the Rental Housing Act as it is to read and understand the requirements of your lease agreement."
Tenant responsibilities
According to Savage, the Rental Housing Act places three main responsibilities on tenants’ shoulders:
- Pay a deposit (if requested by the landlord) of an amount to be agreed upon in the lease.
- Pay rent, and any other costs listed in the lease agreement (e.g. electricity, water, domestic services etc.), on time and in full. There is no legislated “grace period”.
- Participate in an incoming and outgoing inspection with the landlord (or their appointed representative).
“The inspection requirements are particularly important to understand,” says Savage. “If a tenant fails to attend an inspection, they cannot contest the results, which means they could be held liable for damages that were not of their doing. Likewise, if the landlord fails to perform an inspection, they cannot hold the tenant liable for any damages they find down the line.”
When it comes to tenant’s maintenance responsibilities, Savage says legislation is minimal. Most lease agreements will contain similar “common law” requirements, however. These include the expectation that tenants will return the property in the same condition they received it – minus normal fair wear and tear – or foot the bill for any repairs and remediations if they fail to do so.
“Tenants are also generally expected to handle basic maintenance tasks like pool and garden care, replacement of consumables like lightbulbs and tap washers, and good home hygiene,” she says. “Remember, just because these details are laid out in your lease agreement rather than government legislation doesn’t mean they are any less enforceable.”
Landlord responsibilities
Landlords are legally obligated to:
- Ensure the property they are renting out is fit for human habitation, posing no threat to the life, healthy, safety personal property or general welfare of its tenants.
- Provide the tenant with undisturbed enjoyment of the property, giving fair warning before any inspection or maintenance is carried out.
- Supply a copy of any applicable “house rules” as defined by the property’s body corporate, HOA or other.
- Maintain any common property (e.g. communal lifts, stairs, gardens etc.) in a good state of repair.
- Maintain the exterior structure of the property, including walls and roofs.
- Ensure any electrical, plumbing, heating, ventilation, air conditioning and/or elevator systems are in a good state of repair at the start of the lease.
- Repair any damage caused by fair wear and tear (normal, everyday use of the property).
- Provide municipal bins (or alternative waste disposal containers and services).
- Fulfil any additional responsibilities/services laid out in the lease agreement.
- Effect any repairs for which they are responsible as soon as possible after receiving notification (at their own cost, unless the repairs are due negligence of tenants or their visitors).
- Keep the tenant’s deposit in an interest-bearing account and provide statements on request.
- Provide receipts for all payments made by the tenant.
- Keep receipts for all repairs done to the property that have been deducted from the deposit.
- Return the balance of the deposit (plus interest) to the tenant within 14 days of expiry of the lease if repairs are required, or 7 days if no repairs are necessary.
“Remember, as a landlord, it’s in your best interests to keep good tenants happy and your property in excellent condition,” says Savage. “Doing so will reduce vacancies, improve income stability, maintain rental growth potential and enhance your property’s resale value – all vital elements of optimising your investment yield.”
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