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Rent increases, and what happens if you fall behind
South African law sets no general limit on how much a landlord can raise the rent. What protects you is your lease. If you fall behind on rent, your landlord has legal remedies, but cannot lock you out or take your belongings. Knowing both sides of this helps you act early and stay out of trouble.
How rent increases work
The old Rent Control Act is gone, and the Rental Housing Act puts no percentage cap on increases. Instead, the lease governs. If you have a written lease, it must state the rent and any reasonable escalation. For example, a lease might say the rent rises by a set percentage each year on the anniversary of the start date.
During a fixed term, a landlord generally cannot raise the rent unless the lease allows it. Whether a mid-lease increase is allowed depends on what you signed. When the fixed term ends, a new rent is usually agreed for the renewal or for a month-to-month arrangement.
A lease does not have to be written, but you can ask the landlord to put it in writing. If rent increases have been agreed verbally, ask for the amount and the date to be confirmed in writing.
If you think an increase is unfair
- Check your lease. Look for an escalation clause and for how much notice is required.
- Ask for the reason. Rates, levies and maintenance costs go up, and a landlord may be passing them on.
- Compare similar homes. Look at other rentals nearby so you know whether the rent is in line.
- Negotiate. A longer lease or a smaller rise may suit both of you.
- Use the Tribunal for exploitative rents. The Rental Housing Tribunal can rule to stop exploitative rentals and may set the rent in a way that is just and equitable to both sides. Read how to use the Tribunal.
Pay the rent you are asked to pay while you raise your complaint. Tenants who hold back rent in protest give their landlords a stronger case.
If you fall behind on rent
Tell your landlord or agent before the due date, not after. A landlord who hears early is more likely to agree a plan than one who hears nothing. Then:
- Offer a plan in writing. State how much you can pay now, and when you will pay the rest.
- Get any agreement signed or confirmed by message. Verbal promises are hard to prove.
- Keep paying what you can. Partial payments show good faith and keep the debt smaller.
- Look at your budget. Check whether a cheaper home would help, and read ending a lease early before you decide.
Your lease may say what happens when rent is late, such as interest on arrears or a written notice to fix the breach. Read those clauses so nothing surprises you.
What a landlord can and cannot do
A landlord can send a letter of demand, claim the arrears, and, if the lease is validly ended, apply to court for an eviction order. A landlord may not lock you out, cut services except for safety or repairs, or take your belongings. Taking back the property or seizing goods needs a court order. These actions count as unfair practices under the Rental Housing Act, and you can complain to the Tribunal at no cost.
If a complaint is pending, the landlord may not evict you until the Tribunal rules or three months pass, whichever is earlier. During that time you must keep paying rent. The Tribunal cannot grant an eviction order, so a landlord who wants one must go to court. Our article on evicting a tenant lawfully explains that process.
Landlords: handling late payment
If you are a landlord, act quickly but lawfully. Call or write on the first day the rent is late. Keep records of every payment and message. Offer a payment plan if the tenant is willing and the amount is manageable. If that fails, take advice from an attorney before you send any breach notice, because a defective notice can set you back. Never change the locks yourself.
What to do next
Tenants can test how much rent they can afford with the affordability calculator. Landlords can see how an increase or a gap in payments affects their return with the rental yield calculator. Both sides should keep copies of the lease, every payment and any agreement about arrears.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.