SHOWING ARTICLE 1 OF 205

What you need to qualify for a rental property

Category RENTAL NEWS

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.

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.

To qualify for a rental property, prospective tenants need a good credit score, proof of income and affordability, and a clean background check.

Landlords usually also look for a good payment history, and may also want references from previous landlords.

With rental demand often outstripping supply, many properties are not advertised and have waiting lists. Prospective tenants should prepare necessary documents and start searching early, ensuring they're ready to act quickly if a rental opportunity arises, so they don't risk missing out on available properties.

Given the rise of property fraud, prospective tenants are cautioned to be very careful when they respond to rental adverts. You should always verify the property adverts, even those on mainstream sites as scammers often clone legitimate property adverts.

Most importantly, never pay any money until you are certain that both the agent and property are legitimate. Beware of application fees as these are not permitted under the Consumer Protection Act. Agents may, however, charge for services rendered such as credit checks, provided you consent to them.

Working with a credible rental agent protects your interests and can enable you to access a choice of properties. Rentals agents must be registered with the PPRA (Property Practitioners Regulatory Authority) and have a valid Fidelity Fund Certificate. The status can be verified on the website of the PPRA at (theppra.org.za).

Verified income as well as an affordability check is usually required. A stable job with at least three months' payslips which reflect your income will need to be provided. If self-employed, you will similarly need to prove your income and provide bank statements of up to 6-months. Earnings must be about three times the monthly rent.

Maintaining a good credit record is crucial when applying for a rental. A credit score of 661 or higher is typically required, while a score below 610 could be a disadvantage. Credit checks assess debt levels and payment history, helping agents determine your suitability and reliability as a tenant before approving your application.

Before applying for a rental property, tenants must get their documents ready as any delays could result in losing out on the rental. Required documents include a certified ID copy, recent proof of address, three months' payslips, and bank statements (six for self-employed, and, if relevant, company registration documents).

Prospective tenants must have funds ready for the security deposit, often up to two months' rent, the service fees, and the first month's rental. These amounts must be paid upfront. Rent is always due in advance and must appear in the landlord's account by the first of each month, or before you take occupation of the property.

Landlords may also require references from previous landlords to verify your tenant history. These references demonstrate your reliability with payments, care of property, and communication, all of which play an important role in the approval of your rental application.

Tenants should also ensure they budget correctly, especially for items not included in the monthly rent payment. Extras usually include utilities such as electricity, water, refuse, sewerage, and Wi-Fi, and may in some instances also include parking.

Tenants should always attend entry and exit property inspections, and ensure the property is left in the same condition as found. The property must be looked after, and maintenance issues reported timeously to protect the deposit and avoid deductions when the lease ends.

It is also critical that tenants adhere to the lease conditions as well as any complex rules and pay their rent on time. The funds must be in the landlord or agent's account by the first of the month. Good tenant behaviour also makes it easier to renew the lease.

Author: PROPERTY 24

Submitted 25 Jul 25 / Views 15