South African Landlord Laws and Municipal Regulations 2026/2027: What Property Owners Need to Know

Updated: 21 October 2026

Published by the South African Landlords Association (LASA)

1. Proposed PIE Amendment Bill 2026 – Eviction Law Reform

The proposed amendment to the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998, commonly known as the PIE Act, is one of the most important legislative developments affecting South African property owners.

The proposed reforms seek to address unlawful occupation, organised land invasions and difficulties associated with recovering possession of property.

Proposed changes include:

• Measures addressing organised land invasions and the incitement of unlawful occupation.
• Changes to considerations applicable to certain eviction proceedings.
• Clarification of issues relating to alternative accommodation.
• Measures intended to balance constitutional protections with the rights of lawful property owners.

What this means for landlords: If enacted, the reforms could affect how eviction proceedings are conducted. However, landlords must continue to comply with the existing PIE Act until any amendments legally commence.

2. Rental Housing Amendment Act – Future Changes to Residential Tenancies

The Rental Housing Amendment Act 35 of 2014 remains an important development for residential landlords.

Although enacted, its outstanding commencement provisions have not yet been brought into operation by proclamation.

Once implemented, the legislation is intended to introduce additional requirements concerning:

• Written residential lease agreements.
• Landlord and tenant rights and responsibilities.
• Rental Housing Tribunal arrangements.
• Rental Housing Information Offices within municipalities.
• Improved access to information concerning rental housing rights.

What landlords should do: Review tenancy agreements, maintain proper inspection records and ensure rental deposits are handled correctly.

Landlords should not assume that provisions awaiting commencement are already enforceable.

3. Municipal Property Rates and Service Charges from July 2026

South African municipalities generally operate on a financial year running from 1 July to 30 June.

Municipal budgets for 2026/2027 include changes to property rates, electricity tariffs, water charges, sanitation and refuse removal.

These increases can substantially affect rental property profitability, particularly where landlords include utilities within the monthly rent.

City of Johannesburg – Gauteng

Johannesburg's approved average municipal increases for the 2026/2027 financial year include:

These changes affect landlords in Johannesburg, Sandton, Randburg, Roodepoort, Midrand, Soweto and surrounding areas within the municipality.

Landlord impact: Higher water and sanitation charges may be particularly significant for landlords who pay municipal accounts and recover utility costs from tenants.

City of Tshwane – Pretoria and Centurion

The City of Tshwane approved the following increases for 2026/2027:

These increases affect rental properties in Pretoria, Centurion and other areas falling within the City of Tshwane.

Landlords should review their rental budgets, especially where water and electricity costs are included in the rent.

eThekwini Municipality – Durban

eThekwini Municipality approved revised municipal tariff increases for 2026/2027.

These changes affect landlords in Durban, Umhlanga, Pinetown, Amanzimtoti and surrounding areas.

Commercial landlords should pay particular attention to the differences between domestic and business water and sanitation tariffs.

City of Cape Town – Western Cape

Cape Town introduced its revised municipal tariffs from 1 July 2026.

The City's 2026/2027 budget process included changes to municipal tariff structures following a Western Cape High Court ruling.

Important developments include:

• Revisions to residential and commercial property rates calculations.
• Changes concerning the funding of city-wide cleaning services.
• Revised fixed water and sanitation charges.
• A residential rates reduction applying to the first R620,000 of qualifying property value, subject to the City's rates policy.
• Changes to certain commercial electricity tariff structures.

Landlord impact: Property owners should examine their municipal accounts carefully, particularly where charges depend on meter connection sizes, property classification or other fixed tariff components.

Owners of short-term holiday accommodation should also check whether the property's actual use affects its municipal rates classification.

Overstrand Municipality – Hermanus, Kleinmond and Surrounding Areas

Overstrand Municipality approved its 2026/2027 municipal budget on 29 May 2026.

The municipality includes Hermanus, Kleinmond, Betty's Bay, Pringle Bay, Stanford, Gansbaai and surrounding areas.

Overstrand has also continued implementing cost-reflective electricity tariffs, including changes to capacity charges.

Following consultation, the proposed capacity-charge increase was reduced from 65% to 20%.

Landlord impact: Owners of rental properties and holiday homes should review electricity consumption charges together with fixed and capacity-related fees.

Even where a holiday property remains vacant for part of the year, fixed municipal charges may continue to apply.

Short-Term Holiday Letting in Overstrand

Overstrand has specific land-use and planning rules affecting guesthouses, self-catering accommodation and holiday letting.

Certain limited guest-room letting arrangements may be permitted under residential zoning, subject to conditions. Other accommodation uses may require municipal consent or additional approvals.

Landlords using Airbnb, Booking.com or similar platforms should verify zoning, title deed restrictions and applicable municipal requirements.

4. Other Municipalities Landlords Should Monitor

Municipal regulations differ across South Africa. Property owners should consult the approved 2026/2027 tariffs and applicable by-laws of their local municipality.

Nelson Mandela Bay – Gqeberha, Kariega and Despatch

Landlords should review the municipality's approved rates, electricity, water, sanitation and refuse tariffs.

Additional rental units and conversions of residential properties may require planning and building approvals.

Mangaung – Bloemfontein

Rental property owners should review municipal tariffs, property classifications and zoning requirements.

Landlords converting residential properties into multiple rental units should check the applicable land-use scheme.

Buffalo City – East London and Bhisho

Landlords should monitor property rates, electricity charges, water tariffs and municipal service-account arrangements.

Properties converted into multiple rental units may require additional approvals and compliance with applicable safety standards.

Msunduzi – Pietermaritzburg

Landlords should review the municipality's approved 2026/2027 tariffs and ensure that properties are correctly classified for municipal rates purposes.

Stellenbosch and Drakenstein – Western Cape

Landlords in Stellenbosch, Paarl, Wellington and surrounding areas should review municipal charges and planning requirements.

Student accommodation, shared housing and short-term holiday accommodation may be subject to additional zoning and occupancy conditions.

5. Electricity Tariffs, Prepaid Meters and Fixed Charges

Municipal electricity costs remain a major concern for residential and commercial landlords.

Electricity tariffs may include consumption charges, basic monthly charges, capacity charges and other approved tariff components.

This means that landlords can experience higher electricity costs even when actual electricity consumption remains unchanged.

Landlords should review:

• Whether electricity is billed directly to tenants or through the landlord.
• Whether the lease permits recovery of particular electricity charges.
• Whether prepaid meters are municipal or privately operated.
• Whether fixed and capacity-related charges apply.
• Whether any additional administration charges are legally recoverable.

Landlords must not unlawfully disconnect electricity or water as a method of forcing tenants to pay rent or vacate a property.

6. Municipal Property Valuations and Rates Categories

Municipal property rates depend on property valuations, rates categories, applicable policies and any qualifying rebates or exemptions.

An increase in the municipal rate does not necessarily mean that the final rates bill will increase by exactly the same percentage.

Landlords should examine general and supplementary valuation rolls and consider lodging objections within the prescribed periods where valuations or classifications appear incorrect.

Commercial properties, residential properties, vacant land and guest accommodation may fall within different rates categories.

7. Building Alterations, Additional Rental Units and Zoning

Landlords who convert garages, outbuildings or portions of residential properties into additional rental accommodation should confirm that the development complies with municipal requirements.

Depending on the municipality and property, requirements may include:

• Approved building plans.
• Land-use or zoning approval.
• Consent for additional dwelling units.
• Compliance with applicable fire and building safety requirements.
• Approved electricity and water connections.
• Compliance with relevant occupancy conditions.

Landlords should not assume that an existing structure may lawfully be used as a separate rental dwelling without approval.

8. Airbnb, Guesthouses and Short-Term Holiday Rentals

Short-term holiday accommodation is subject to a combination of municipal planning requirements, contractual obligations and other applicable laws.

Requirements may differ depending on the number of rooms, the property's zoning, guest turnover and the nature of the accommodation business.

Landlords should verify whether municipal consent is required and whether restrictions apply under title deeds or sectional-title scheme rules.

Listing a property on an online booking platform does not automatically establish that the accommodation use is lawful.

9. Rental Deposits and Tenant Protection

The Rental Housing Act continues to regulate important aspects of residential letting, including rental deposits, inspections and the return of deposits.

Landlords should ensure that deposits are handled in accordance with the applicable statutory requirements, including interest-bearing account obligations.

Proper incoming and outgoing property inspections are particularly important where deductions are proposed for damage.

Landlords should retain photographs, inspection reports, invoices and correspondence supporting any lawful deductions.

10. POPIA and Tenant Personal Information

The Protection of Personal Information Act applies to landlords and letting agents who process personal information.

Tenant information may include identity documents, credit reports, financial records, employment information and contact details.

Landlords should collect information for lawful purposes, protect it against unauthorised access and retain it only for as long as legally justified.

Where letting agents or referencing companies process tenant information, the relevant responsibilities should be clearly established.

11. Landlord Compliance Checklist for 2027

Before the next municipal budget cycle, landlords should review their properties and rental arrangements.

1. Review municipal accounts for each rental property.
2. Check property valuations and rates categories.
3. Confirm electricity and water tariff structures.
4. Review lease clauses dealing with utility charges.
5. Ensure rental deposits comply with statutory requirements.
6. Maintain accurate incoming and outgoing inspection records.
7. Verify zoning and building approvals for additional rental units.
8. Check municipal requirements for holiday accommodation.
9. Monitor the PIE Amendment Bill and Rental Housing Amendment Act.
10. Ensure letting agents meet applicable regulatory requirements.
11. Review tenant information handling under POPIA.
12. Retain municipal statements and relevant compliance documentation.

12. Conclusion: What South African Landlords Should Expect

The 2026/2027 period presents important challenges for South African landlords.

Proposed national eviction reforms could eventually change aspects of the legal process for recovering possession, while municipal budget decisions are already affecting property operating costs.

Landlords should distinguish between legislation already in force, proposed reforms and municipal tariff changes.

Careful management of municipal accounts, tenancy agreements, property compliance and legal obligations can help reduce financial and legal risks.

The South African Landlords Association will continue to monitor legislative developments and municipal changes affecting residential and commercial landlords.

Official Sources and Further Reading

The following official government and municipal resources provide further information:

• South African Government – Rental Housing Amendment Act
• Department of Human Settlements – PIE Amendment Bill 2026
• City of Cape Town – Municipal Tariffs
• City of Tshwane – Official Municipal Website
• eThekwini Municipality – Official Website
• Overstrand Municipality – Budgets and Municipal Information
• City of Johannesburg – Municipal Information