What to Look for in a Rental Lease Agreement in South Africa (Tenant Guide)

Lease Duration and Renewal Terms

In South Africa, lease agreements can be fixed-term (e.g. 12 months) or month-to-month. Under the Consumer Protection Act (CPA), fixed-term leases cannot unfairly lock tenants in without reasonable cancellation options.

Check: - The start and end date of the lease - Whether it renews automatically - The notice period required to cancel

Tenants are generally allowed to cancel a fixed-term lease with 20 business days’ notice, but a reasonable cancellation penalty may apply.

Rent Amount and Escalation

Your lease should clearly state how much rent you will pay and when it is due.

Look out for: - Monthly rental amount - Payment due date - Late payment penalties - Annual rent increases (escalation clauses)

Increases are usually applied annually, but the percentage must be clearly stated in the agreement.

Deposit and Refund Rules

South African law requires landlords to handle deposits in a specific way under the Rental Housing Act.

Important points: - The deposit must be kept in an interest-bearing account - You are entitled to the interest earned - A joint inspection must be done before you move in and when you leave

Failure to follow these rules may result in the landlord not being allowed to deduct from your deposit.

Maintenance and Repairs

The Rental Housing Act places clear responsibilities on both landlords and tenants.

Check: - Who handles structural repairs (usually the landlord) - Who handles minor maintenance (often the tenant) - How quickly repairs must be addressed

The property must be “habitable,” meaning safe and suitable to live in.

Utilities and Additional Costs

Not all costs are included in your rent.

Clarify: - Electricity (prepaid or billed) - Water and sanitation - Refuse removal - Parking or security fees

These extra costs can significantly impact your monthly budget.

Rules and Restrictions

Lease agreements often include lifestyle rules.

Common restrictions: - Pets - Noise levels - Subletting - Number of occupants

Breaking these rules can lead to penalties or eviction, so make sure they align with your lifestyle.

Early Termination and Penalties

Under the CPA, tenants can cancel a lease early with proper notice, but landlords may charge a reasonable penalty.

Check: - The required notice period (usually 20 business days) - How penalties are calculated - Any additional exit conditions

Avoid agreements with vague or excessive penalty clauses.

Inspections and Condition Reports

Inspections are a legal requirement in South Africa.

Ensure: - A move-in inspection is completed and documented - A move-out inspection is done when you leave

This protects you from unfair deposit deductions for damages you didn’t cause.

Hidden and Unfair Clauses

Many lease agreements include legal jargon that can hide important risks.

Watch out for: - Clauses that shift all responsibility to the tenant - Automatic penalties - Unclear legal language