Top 7 Mistakes Landlords Make When Managing Without an Agent (and How to Avoid Them) in South Africa
Managing rental property without a letting agent can be rewarding. It saves on commission fees and gives landlords direct control over tenants and property decisions.
However, it also comes with challenges. Many landlords underestimate the time, knowledge, and systems required for effective property management. Below, we explore the top seven mistakes landlords in South Africa make when managing without an agent, and how to avoid them.
Not Understanding South African Rental Laws
One of the biggest mistakes is failing to understand the legal framework. South Africa has strict laws governing rental housing under the Rental Housing Act and the Consumer Protection Act (CPA), as well as provincial rental housing tribunals.
Landlords sometimes enter into informal agreements or verbal contracts. This can expose them to disputes over rent, deposits, or maintenance. Without legal compliance, landlords risk tribunal rulings or court orders against them.
How to avoid this:
Always use a legally compliant lease agreement that meets the requirements of the Rental Housing Act and CPA.
Stay informed about changes in legislation and understand your tenant rights, particularly regarding eviction, deposits, and repairs. Membership in a landlord association can also provide templates and guidance.
Poor Tenant Screening
Many landlords are tempted to accept the first applicant who shows interest. Failing to conduct proper screening can result in late payments, property damage, or tenants who are difficult to evict.
A common mistake is relying solely on verbal assurances. Some landlords do not conduct credit checks, reference checks, or verify employment.
How to avoid this:
Adopt a professional screening process. This should include:
- A full credit report.
- Verification of employment and income.
- References from previous landlords.
- Checking for tribunal or court records where possible.
A careful screening process reduces the risk of problem tenants and long-term losses.
Mishandling the Deposit
South African law requires deposits to be held in an interest-bearing account, with interest accruing to the tenant.
Many landlords mishandle deposits by not safeguarding them properly or by failing to provide both incoming and outgoing inspection reports.
Without proper inspection records, landlords often lose disputes at the tribunal when claiming damages.
How to avoid this:
- Place the deposit in a separate interest-bearing account.
- Provide written proof of the deposit’s location and interest.
- Conduct and document incoming and outgoing inspections with the tenant present.
- Keep photo or video evidence of the property’s condition.
This ensures compliance and protects landlords in the event of damage.
Neglecting Maintenance and Repairs
Self-managing landlords sometimes delay repairs to save costs or ignore tenant complaints. This can backfire. The Rental Housing Act requires landlords to maintain the property in a habitable condition.
Failing to address repairs may result in tribunal orders, rental reductions, or even legal penalties.
Neglect also reduces the property’s long-term value and damages the landlord-tenant relationship.
How to avoid this:
Have a clear system for reporting and responding to maintenance issues. Budget for ongoing repairs and preventative maintenance. Address safety-critical topics such as plumbing leaks, faulty wiring, or structural problems promptly. Keeping the property in good condition preserves its value and keeps tenants satisfied.
Failing to Keep Proper Records
Many landlords treat property management casually, failing to keep accurate records of rent received, maintenance costs, or correspondence with tenants. This becomes a problem during disputes, audits, or when applying for financing.
Without proper records, landlords have little evidence to support their case in a tribunal.
How to avoid this:
Implement a simple record-keeping system. Use spreadsheets, accounting software, or even property management apps. Keep:
- Rent payment receipts.
- Maintenance invoices.
- Deposit account statements.
- Tenant communications in writing.
Accurate documentation can be the difference between winning and losing a dispute.
Improper Rent Collection
Some landlords accept informal payment methods such as cash handed over without a receipt. Others fail to enforce due dates, leading to irregular payment habits. Over time, this undermines cash flow and makes recovery of arrears difficult.
How to avoid this:
Set up clear rent payment terms in the lease. Accept electronic transfers for easy tracking. Provide receipts for every payment. If rent is late, act promptly with reminders and formal notices. Establishing a consistent system ensures tenants take payments seriously.
Not Planning for Vacancies
Many landlords assume their property will always be occupied. They do not plan for vacancy periods or tenant turnover. Without planning, landlords may struggle to cover mortgage payments, rates, or maintenance costs during empty months.
How to avoid this:
- Keep a financial buffer for at least two to three months of expenses.
- Start advertising the property well in advance of a lease end.
- Keep the property in good condition to attract new tenants quickly.
A proactive approach can help reduce financial stress during vacancies.
FAQs
Can I legally evict a tenant myself in South Africa?
No. Landlords must follow the proper eviction process through the courts or the Rental Housing Tribunal. Attempting to remove tenants directly is illegal and can lead to penalties.
Do I need a written lease agreement if I manage my own property?
Yes. Verbal agreements are legal but risky. A written lease protects both landlord and tenant and is required for compliance with the Rental Housing Act.
What happens if I don’t put the deposit in an interest-bearing account?
The tenant can take the landlord to the tribunal. Landlords may be ordered to pay penalties, return the deposit with interest, and may lose claims for damages.
How quickly must landlords attend to repairs?
Urgent repairs, such as leaks, electrical faults, or security issues, should be attended to immediately. Non-urgent maintenance should be addressed within a reasonable timeframe, typically 7 to 14 days.
What if a tenant stops paying rent?
Landlords must issue formal notices and, if the issue remains unresolved, approach the Rental Housing Tribunal or the court. It is illegal to lock tenants out or cut off utilities.
Conclusion
Managing property without an agent in South Africa can save costs, but it requires knowledge, discipline, and a high level of professionalism.
Common mistakes, such as poor tenant screening, mishandling deposits, neglecting maintenance, and failing to comply with legal obligations, can quickly escalate into costly disputes.
By understanding the law, keeping proper records, planning for vacancies, and treating property management as a business, landlords can succeed without an agent while protecting both their investment and their tenants.
Don’t go through it alone — South Africa’s landlords stand together.
When you join the Landlords Association of South Africa, you gain more than just membership; you gain a robust network of support. From expert legal advice and vital landlord resources to guidance on dealing with problem tenants, we stand with you every step of the way.
For just 2 rand a day, you can access professional advice, proven tools, and a community that understands the challenges of both commercial and residential property management.
Join today and experience the confidence of knowing you’re never facing it alone.
Our Top Read Blogs:
How to Sell a House in South Africa Fast
Complete Process of Tenant Eviction in South Africa
What Can I Do If A Tenant Is Neglecting My Property
Useful External Links
https://www.gov.za/documents/rental-housing-act
Disclaimer:
This post is for general use only and is not intended to offer legal, tax, or investment advice; it may be out of date, incorrect, or maybe a guest post. You are required to seek legal advice from a solicitor before acting on anything written hereinabove.
