Warning for landlords in South Africa

Experts warned that South African landlords face significant financial and legal risks if they fail to properly vet tenants, as one bad choice can lead to rent defaults, costly evictions, and long-term damage to their investment.

Rental agents from the Seeff Property Group explained that, although South Africa’s rental market is booming for landlords and investors, they still face the challenge of finding the right tenants.

Novice investors, in particular, may struggle to find tenants who consistently pay their rent on time. Ending up with the wrong tenant can be costly for any landlord or investor.

It is also not just about the late rental payment or non-payment, Seeff’s agents said. Landlords and investors can face a real challenge if they need to evict the tenant, the agents said.

For this reason, they stressed the importance of proper tenant and agent vetting. This point was also reflected in the internal data from Seeff’s rental division.

It found that a lack of formal evictions, which would require legal intervention, is directly attributed to the improper vetting of tenants and the use of legally compliant documents.

The lack of evictions is also tied to inadequate processes, such as a landlord’s failure to take quick action when a tenant defaults.

The demand for rental accommodation is high, especially in urban areas, as people continue to flock to cities and towns in search of better economic opportunities.

Data from mortgage originator ooba, for example, shows that buy-to-let investment properties have risen to 12% of all home loan applications in 2025.

This is an increase from 10.9% in 2023, which was a market high at the time. This is good news as the market is in need of more stock, Seeff’s agents said.

Rental investments have also been rewarding for landlords. PayProp data indicates that the national year-on-year rental growth rate is approximately 5% for this year, surpassing both inflation and house price growth.

At the same time, PayProp found that tenant arrears have been fairly manageable and quite low in certain areas.

Seeff said that although the rental market averages are a further boost for buy-to-let investments, investors and landlords must ensure that operational risks are effectively managed.

Eviction headache for landlords

Thorough tenant vetting processes protect the property investment and set the foundation for a positive and stable relationship with the tenant.

Unfortunately, a single bad tenant choice can result in significant financial losses and a costly, lengthy eviction process.

In South Africa, the eviction process is particularly complex and difficult since the law prioritises due process and constitutional protections over speed.

Landlords are required to follow the strict procedures set out in the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act when they want to evict tenants.

Even unlawful occupiers may only be evicted with a court order after proper notice, a hearing, and a judicial finding that the eviction is “just and equitable”.

Courts must consider factors such as vulnerability, length of occupation, and the availability of alternative accommodation, often involving municipalities.

Illegal evictions, which occur if the proper procedure is not followed, expose landlords to reinstatement orders, damages claims, and even criminal liability.

Rather than dealing with this complicated and cumbersome process, Seeff urged landlords and investors to properly vet potential tenants.

The process of verifying a potential tenant’s income, employment stability, and credit history ensures the tenant’s ability to consistently meet their rental obligations. This reduces the likelihood of late or missed rent payments.

Reliable tenants are also more likely to take care of the property, comply with the lease terms, and minimise the need for costly repairs beyond normal wear and tear.

A rental property is a significant investment, Seeff said. Finding a responsible tenant protects the long-term value of the asset and ensures a stable income stream.

Properly vetted tenants who treat the rental property with respect are also more likely to stay in the property long term.

This reduces the costs associated with high tenant turnover, including the need for extra cleaning, marketing, and re-screening expenses.

Seeff added that proper vetting and screening also protect the tenant as it ensures that they do not overextend themselves financially, and are able to find more secure rental accommodation.

Generally, prospective tenants need to be aware that they require a good credit and behaviour record when applying for a rental property.

“There are simply too many onerous legal compliance issues for this aspect to the overlooked, and it protects both the landlord and the tenant,” Seeff said.