Renting a property can sometimes lead to disputes between landlords and tenants - from non-payment of rent to disagreements about maintenance, municipal charges, noise, and even overcrowding.
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Andrew Schaefer, MD of property management company Trafalgar, says the best way to avoid conflict is to be proactive and prepared. “We find that the most frequent disputes between landlords and tenants typically revolve around non-payment of rent, issues with municipal charges, noise complaints, property maintenance, and overcrowding,” he explains. “But with the right approach, they can be avoided altogether or swiftly resolved.”
For Schaefer, the key is a well-structured, detailed lease agreement that outlines the responsibilities of both parties while anticipating common problems. He adds that landlords or their agents should take the time to explain this document thoroughly before it’s signed - not just email it for a quick signature.
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This focus on clarity is echoed by Johan de Bod from Koegelenberg Attorneys (KGB) and Sarah Fourie from PayProp, who recently shared expert legal insights at a PayProp Masterclass. While South Africa’s rental market is thriving, they caution that investors and property professionals still face legal risks - from unpaid rent and damaged properties to contested deposits. Getting these processes wrong can result in drawn-out disputes, lost income and costly legal battles.
Here are five essential legal tips they recommend to help property professionals and landlords manage disputes with confidence and compliance.
1. Your lease is your first line of defense
Every tenancy starts with a lease - but not all leases provide real protection.
“A weak lease is one of the fastest ways to end up in legal hot water,” says De Bod. “Too many landlords rely on incomplete or outdated leases.”
Clear clauses covering maintenance, alterations, deposits and termination can prevent disputes, but these must comply with the Rental Housing Act and Consumer Protection Act. If a lease term conflicts with legislation, the law always prevails.
“A strong, compliant lease agreement doesn’t just protect the landlord - it also creates clarity for tenants. That clarity is often what prevents disputes from escalating,” De Bod adds.
2. Manage arrears with a proper Letter of Demand
When arrears become serious, landlords must follow the law to recover payments.
A legally compliant Letter of Demand, served to the correct address as per the lease, is the first step to enforce arrears in court. Informal reminders like WhatsApps or emails will not hold up legally.
“The Consumer Protection Act gives tenants 20 business days to remedy a breach, even if your lease only specifies seven,” De Bod warns. “Failing to follow these notice periods can derail your eviction case before it begins.”
Fourie points out that PayProp users can issue compliant Letters of Demand directly through the platform for R125, with costs recoverable from tenants. Koegelenberg Attorneys also offer fixed-fee eviction services to make complex processes more affordable.
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3. Deal fairly with habitual late payers
Some tenants pay late month after month, just before the notice period expires. While rent eventually comes in, these delays can harm landlords’ cashflow - especially if they depend on rental income to cover bond repayments.
Courts allow landlords to include fair early termination clauses in leases, provided the correct process is followed. De Bod suggests considering:
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Repeat breach clauses to allow early termination after recurring defaults
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Shorter lease terms or avoiding automatic renewals
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Fair termination rights that balance landlord flexibility with tenant protections
He cautions, however, that general landlord termination rights remain largely untested in South African courts.
On the tenant side, the Consumer Protection Act allows them to end a fixed-term lease early with 20 business days’ notice. Landlords may charge a reasonable cancellation penalty, but this can only cover actual losses such as advertising costs or one month’s rent - not the balance of the lease.
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4. Don’t skip inspections
Both incoming and outgoing inspections are a legal requirement. If a landlord skips these, the tenant may be entitled to a full deposit refund - even if the property is damaged.
Joint inspections, supported by time-stamped photos, videos and signed condition reports, provide vital evidence if a dispute arises.
5. Handle deposits correctly
Deposits must be held in an interest-bearing account for the tenant’s benefit. Deductions are only permitted for unpaid rent, utilities, or damages beyond fair wear and tear.
De Bod gives an example: deep scratches on a wooden floor may justify deductions, but a single scuff on a wall does not warrant repainting the entire room.
Fourie stresses the importance of adequate deposits: It’s not just about holding deposits. Monitoring deposit pool health is essential to ensure landlords are protected.”
According to the PayProp Rental Index, the average deposit is 1.31 times the monthly rent, with 1.5 times being common at the upper end.
The bottom line
Whether it’s noise complaints, arrears or contested deposits, disputes are costly and stressful. But the experts agree: the best protection is prevention through clarity and compliance.
As De Bod sums up: “A well-drafted lease, proper communication and respect for the law are non-negotiables. If landlords and property professionals get this right, they not only protect themselves legally, they also create a better rental experience for tenants.”
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