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. 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. Property24 and PrivateProperty are South Africa’s leading 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. Our services are designed to minimise risk, reduce stress and maximise returns.
Just Property’s goal is to create wealth through property and ensure that your property investment grows steadily over time. To ensure this, we provide:
- Comprehensive tenant sourcing: We market your property across multiple platforms, rigorously screen tenants, and manage lease negotiations.
- Rental collections and arrears management: We ensure that rent is collected promptly and handle any late payments professionally and timeously.
- Maintenance coordination: We manage property maintenance and repairs through a trusted network of service providers, ensuring that your property is well cared for.
- Regular property inspections: We conduct thorough inspections, as regulated by the RHA, to protect your asset and ensure tenant compliance.
- Financial management: We provide detailed monthly statements and manage deposit accounts in compliance with legislation.
- Legal compliance support: We stay updated with all legislative changes, ensuring that your rental practices remain compliant.
- Professional advice: Our team offers expert guidance on rental valuations, property improvements and investment strategy.
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.
At Just Property, we understand the challenges first-time investors face. Our team offers comprehensive property management services, tailored marketing strategies and professional advice to ensure that your rental journey is a smooth and profitable one.
Your property is more than an asset – it’s a platform for long-term wealth creation. With the right approach, 2025 can mark the beginning of a prosperous investment journey.
Let’s make your investment work for you.