Rent Increase & Lease Renewal
Rent Increase & Lease Renewal Service
Practical Support for South African Landlords
When a residential lease is approaching expiry, landlords should use the opportunity to review the rent, lease terms and tenancy documentation before agreeing to a renewal.
The Landlord Association of South Africa (LASA) Rent Increase & Lease Renewal Service helps members deal with rent increases, lease renewals, revised tenancy terms and the documentation required before an existing lease expires.
Whether you want to increase the rent, renew for another fixed term, change particular lease conditions or review the tenancy before renewal, we can help you consider the appropriate steps and documentation.
This service is exclusively available to LASA members.
Not currently a member? Why not join LASA and gain access to this service together with our wider range of landlord support, documents and member benefits?
Is Your Tenant’s Lease About to Expire?
The period before a lease expires is an important time for both landlords and tenants.
Rather than automatically renewing the existing agreement, landlords should consider whether anything needs to change.
This may include:
- Reviewing the current rent
- Considering an appropriate rent increase
- Deciding whether to offer a renewal
- Determining the proposed renewal period
- Reviewing existing lease terms
- Updating outdated provisions
- Changing particular tenancy conditions
- Reviewing deposit arrangements
- Checking the occupants of the property
- Reviewing pet arrangements
- Checking property inspection records
- Considering maintenance issues
- Updating landlord and tenant information
- Preparing the appropriate renewal documentation
Planning early gives the landlord time to consider these issues before the existing agreement expires.
Rent Increase Assistance
Thinking About Increasing the Rent?
Rental properties need to remain financially sustainable, and landlords may periodically need to review the rent being charged.
However, a landlord should not assume that rent can simply be increased at any time or by any amount without considering the existing lease and applicable legal requirements.
Our service can help members review:
- The current rental amount
- Existing rent-increase provisions
- Timing of the proposed increase
- Proposed new rental amount
- Percentage increase
- Renewal arrangements
- Required landlord correspondence
- Documentation of the new rent
- Relevant terms of the existing lease
The objective is to ensure that the proposed increase is considered before it is communicated or implemented.
How Much Should You Increase the Rent?
There is no single percentage that will be appropriate for every rental property.
Landlords may wish to consider factors such as:
- Current rent
- Local market rent
- Length of time since the previous increase
- Property condition
- Increased ownership and operating costs
- Comparable rental properties
- Tenant payment history
- Length of the proposed renewal
- Existing lease provisions
- The importance of retaining a reliable tenant
A rent increase should be considered as part of the wider landlord and tenant relationship rather than simply choosing an arbitrary percentage.
Lease Renewal Assistance
Don’t Automatically Renew an Outdated Lease
A lease renewal is an opportunity to review whether the existing agreement still reflects the circumstances of the tenancy.
A lease may have been suitable when originally signed but circumstances can change.
For example:
Has another person moved into the property?
Does the tenant now have a pet?
Have utility arrangements changed?
Are there new body corporate or complex rules?
Does the existing lease contain outdated or unclear provisions?
Have recurring problems exposed weaknesses in the agreement?
LASA members can obtain assistance reviewing these matters before a new lease or renewal is agreed.
Reviewing the Existing Lease
Before renewing, landlords should consider reviewing important provisions such as:
Rent and Payment
Is the rent still appropriate, and are payment dates and methods clearly recorded?
Rental Deposit
Does the documentation correctly record the deposit already held and any arrangements relevant to the renewed tenancy?
Occupants
Are all permitted occupants correctly identified?
Repairs and Maintenance
Have any disputes arisen because responsibilities are unclear?
Utilities and Municipal Charges
Does the agreement clearly reflect the current arrangements?
Pets
Has a pet been introduced during the existing tenancy, and does the renewed agreement need to reflect any agreed arrangements?
Subletting
Are the provisions appropriate for the property and tenancy?
Property Access
Does the agreement adequately deal with legitimate access for inspections, maintenance and repairs?
Body Corporate or Estate Rules
If the property is in a sectional title scheme, estate or managed complex, are the relevant rules properly addressed?
Breach Provisions
Have problems during the existing tenancy highlighted provisions that require review?
Changing Lease Terms at Renewal
A landlord may want to change more than just the rent when offering a renewal.
Examples might include:
- Revised rental amount
- Different lease duration
- Updated payment provisions
- Revised utility arrangements
- Updated occupant details
- Revised pet provisions
- Updated parking arrangements
- New or revised house rules
- Clarification of maintenance responsibilities
- Changes reflecting body corporate requirements
- Other agreed tenancy terms
Changes should be clearly documented and agreed through the appropriate renewal documentation rather than relying on informal conversations.
Don’t Leave Lease Renewal Until the Last Minute
Landlords should review the tenancy sufficiently early to allow time for decisions and appropriate communication.
Waiting until the final few days of a lease can create unnecessary uncertainty.
Before expiry, consider:
Will you renew?
What rent will you propose?
How long will the renewal be?
Will any terms change?
Does the lease need updating?
What documentation needs to be prepared?
When must the tenant be notified?
Starting the process early provides time to address any issues before the existing lease comes to an end.
What If You Do Not Want to Renew the Lease?
A fixed-term lease reaching its stated expiry date should not automatically be treated as meaning that the landlord can simply demand immediate vacant possession without considering the agreement and applicable law.
The legal position may depend on the lease, the circumstances and applicable consumer and rental housing legislation.
If you do not intend to renew, contact LASA before taking action so that the appropriate notice and next steps can be considered.
Existing Tenant or New Lease?
A renewal is also an opportunity to decide whether the existing documentation should simply be extended or whether updated documentation would be more appropriate.
Where a lease is old, unclear or has been repeatedly amended, it may be preferable to review the documentation more comprehensively before the next rental period begins.
LASA members can also use our Free Lease Review / Compliance Check service where a more detailed examination of their residential lease is required.
Rent Increase and Renewal Records
Landlords should keep a clear record of the renewal process.
This may include:
- Existing lease
- Previous lease renewals
- Current rental amount
- Previous rent increases
- Proposed new rent
- Rent increase correspondence
- Tenant response
- Negotiations
- Renewal offer
- Revised terms
- Signed renewal documentation
- Updated lease agreement
- Deposit documentation
- Updated inspection or inventory records where appropriate
Keeping the documents together provides a clear record of what was proposed and ultimately agreed.
What Does the Rent Increase & Lease Renewal Service Include?
Depending on the circumstances, LASA members can obtain assistance with:
- Reviewing the existing lease
- Considering rent increase provisions
- Reviewing the proposed rental increase
- Considering timing and notice requirements
- Preparing appropriate landlord correspondence
- Reviewing proposed renewal terms
- Identifying provisions that may need updating
- Recording revised tenancy terms
- Considering renewal documentation
- Identifying potential compliance concerns
- Considering what happens if the tenant rejects the proposed terms
- Identifying when specialist legal advice may be required
How the Service Works
Tell Us About the Tenancy
Provide the property details, current rent, lease expiry date and what you would like to change.
Send Us the Existing Lease
We may need to review the current agreement to understand the existing rent and renewal provisions.
Tell Us What You Are Proposing
For example, provide the proposed new rent, renewal period and any terms you would like to change.
We Help You Review the Position
We help identify the relevant issues and appropriate documentation or correspondence.
Complete the Renewal
Once the terms have been agreed, ensure that the renewal or replacement documentation is properly completed and retained.
Who Can Use the Service?
The Rent Increase & Lease Renewal Service is exclusively available to LASA members.
It can be particularly useful if:
- Your tenant’s lease is approaching expiry
- You want to increase the rent
- You are unsure how much notice may be required
- You want to renew for another fixed period
- You want to change some of the lease terms
- Your existing lease is outdated
- Your tenant is negotiating the proposed increase
- You are unsure whether to renew
- You do not want the tenancy to continue
- You need appropriate renewal correspondence or documentation
Already a LASA Member?
If your tenant’s lease is approaching expiry, contact us before agreeing to the renewal or sending the proposed rent increase.
Provide the existing lease, expiry date, current rent and details of what you are proposing.
Not a Member? Join LASA Today
The Rent Increase & Lease Renewal Service is a members-only service.
If you are not currently a member, you can join the Landlord Association of South Africa and gain access to this service together with our other landlord support, resources and member benefits.
Membership gives landlords somewhere to turn when dealing with important tenancy issues—from preparing and reviewing documentation to handling arrears, breaches and disputes.
Don’t wait until the lease is about to expire. Join LASA and get the landlord support you need.
View LASA Membership Options and Join
Frequently Asked Questions
Can LASA help me increase my tenant’s rent?
Yes. Members can obtain assistance reviewing the proposed increase, the existing lease provisions, timing and appropriate documentation or correspondence.
Is there a fixed percentage by which landlords can increase rent?
Landlords should not assume there is a universal percentage applicable to every residential tenancy. The lease, timing, applicable legislation and circumstances of the particular tenancy should be considered.
Can I increase the rent when renewing the lease?
A proposed new rental amount can form part of renewal discussions, but the existing agreement and applicable legal requirements should be reviewed before the increase is implemented.
Can I change other terms when renewing?
Potentially, but revised terms should be properly considered, communicated and agreed where required. A renewal should not be treated as an opportunity to impose arbitrary or unlawful terms.
What happens if the tenant refuses the proposed rent increase?
The appropriate next step depends on the existing lease, the nature of the proposed increase and the circumstances. Members can seek further guidance before taking action.
Should I use a completely new lease?
That depends on the condition and suitability of the existing agreement. Where a lease is outdated or has been repeatedly amended, a more comprehensive update may be preferable.
What if I don’t want to renew?
Seek guidance before assuming that the expiry date alone permits immediate repossession. Applicable notice, consumer protection and rental housing requirements may need to be considered.
How early should I contact LASA?
Preferably well before the existing lease expires. This provides time to review the agreement, consider the proposed rent and terms, communicate with the tenant and prepare the necessary documentation.
Is this service available to non-members?
No. The Rent Increase & Lease Renewal Service is available to LASA members. Non-members can join LASA and then request assistance subject to the applicable membership terms.
Review Your Rent and Lease Before It Expires
A lease renewal should be more than changing the dates on the existing agreement.
Use the opportunity to review the rent, tenancy terms, documentation and arrangements for the next rental period.