There is a good opportunity in South Africa without being a landlord. This allows you to earn passive income. But this work is not just a means of earning money. It also has responsibility. First-time landlords often make mistakes. He either does not check the tenant properly or does not maintain the property. Sometimes we misunderstand the legal process.

All these issues have created difficulties. You may also suffer financial loss. There is also mental stress. In this blog we will give you 7 tips that are essential for any landlord in South Africa. Each piece of advice will help you become a better landlord.

1. Giving property in good condition

Tenants require property in good condition. If the house is in bad condition, the tenant will not be serious. He is late for the rent or does not maintain the property, especially in South Africa.

This condition means that something is moving in the same direction. The paint is fresh. Doors, windows, lights and faucets still work. If you want to make a good impression, rent a property. Clean the house. Money has been spent on repairs. Security features such as locks and burglar bars are pre-installed. First time landlords South Africa should ensure the property is in top condition to attract reliable tenants.

2. Understanding and writing a lease agreement

Oral contracts have no legal significance in South Africa. If something goes wrong, you won’t be able to prove what happened. A proper lease agreement is essential. This means that the rent amount is written down. When and how the payment is to be made should be mentioned. The collection is mentioned. Who will do the maintenance, what the notice period will be, everything should be written down.

A contract protects the rights of both parties. If the tenant doesn’t pay rent or damages the property, the lease document will prove your case. Get the lease drafted by a professional. Or use certified templates online. Pay attention to each clause. Each page is signed.

3. Don’t neglect tenant screening

Finding the right tenant is the most important step. Every month there is a problem with the wrong tenant. Rent is late. Property has been damaged. Sometimes a legal case is also filed.

It is not enough to simply feel the honor or the thing in the mind by seeing it. Background check is mandatory.Identity proof line. See your employment letter or payslip. Reference line from previous landlord. Check credit. Is there a legal case against the tenant? Was he paying rent before or not?

4. Taking deposits and maintaining their records

Taking a deposit is not only important for the landlord but also for the tenant. It protects both.The purpose of the deposit is to cover the cost of repairs if the tenant damages the property. Even if the tenant doesn’t pay the rent, you can adjust the deposit.

According to South African law, your deposit must be held in a separate bank account. Tenant has to provide his proof. When the lease ends, a final inspection has to be done and if everything is in order, the deposit has to be returned. Create a receipt for each payment. The inspection report is kept in writing. Photos remain. Everything should be on record.

5. Declaring rental income

Many landlords make the mistake of thinking rent is just income. Tax has to be paid on this income. In South Africa, rental income must be declared to SARS. First time landlords South Africa often overlook this requirement. If you hide rental income, you can be fined. But the good thing is, you can also reduce your taxable income. Like maintenance, agent fees, and insurance charges. If you keep all these records, your taxable amount is reduced. Talk to an accountant or tax consultant. Keep a record of every rent receipt, repair bill, and bank statement. File your tax return every year.

6. Maintain a professional and respectful demeanor

Being a landlord doesn’t mean you have to dictate to the tenant at any time. The tenant is your customer. You should be respectful and professional.

But that doesn’t mean you have to break every rule either. If the tenant is not paying rent on time or is doing illegal things, you should take action, especially as a landlord in South Africa.

Everything will be done in writing. Use WhatsApp or email. Do not rely on calls or verbal communication. Maintenance requests will be resolved in a timely manner. But keep a record of everything. Clear and respectful communication prevents misunderstandings.

7. Regular inspection of the property

Just forgetting the property is a mistake. You should know the condition of your property. Whatever the tenant is doing  illegal business, subletting, or damage to the property you must tell him. The lease states that inspections will take place every 3 or 6 months. Give advance notice to the tenant. Make a brief report after each inspection. Photographs taken during inspection. Please check each room. Also check for water leaks, electrical faults and cleaning.

Conclusion 

Landlords are the best investment in South Africa. But without planning it can become stressful for you. Every landlord should give equal importance to the property, the tenant and the paperwork. By implementing each tip you can become a safe and profitable landlord. These tips are for beginners only. Learning is always ongoing. If you would like a PDF or Word version of this blog or a visual guide or checklist created on this topic let us know. Do you also want the next part of this series – Landlord Legal Rights in South Africa?

FAQs

Q1: Is it necessary to write a lease agreement?
Yes A written lease agreement provides legal protection. A verbal contract is dangerous.

Q2: Is it necessary to get the tenant’s ID?
Of course. The first step is to get proof of the tenant’s identity and income.

Q3: How to keep the deposit?
The deposit should be kept in a separate account. Tenants must provide proof of use.

Q4: Is there tax on rental income?
However, every landlord must declare their rental income to SARS.

Q5: What if the tenant does not pay the rent on time?
The first written notice was given. If the matter is not resolved take legal action. An eviction process will be followed.

Q6: Is it legal to check a tenant’s credit?
Yes You can check our credit with the tenant’s permission.

Q7: Is it better to hire an agent or organize yourself?
If you are busy or new it is better to hire an agent. He handles documentation and screening.