“Investing in a rental property is as much about people, process, and peace of mind, as it is about property,” says Pearl Scheltema, CEO of Fitzanne Estates. “Being a landlord in today’s South Africa comes with increasing demands, not only in terms of legal compliance and tenant relations, but also in maintaining the value and functionality of one’s investment.”
With property ownership still viewed as one of the most reliable vehicles for long-term financial stability, many South Africans continue to invest in rental properties. However, the road from property purchase to profitable leasing is not without its potholes.
According to the latest TPN Credit Bureau Residential Rental Monitor (Q1 2025), while national vacancy rates have improved slightly year-on-year, dropping from 8.13% to 7.84%, landlords face increasing pressure to retain quality tenants, ensure legal compliance, and remain financially solvent amidst shifting economic realities.
Further data from Lightstone shows that approximately 22% of residential property transactions in South Africa are investor-driven, indicating a strong demand for income-generating real estate. Yet despite the appetite for property investment, the practicalities of managing rentals can be overwhelming, particularly for those managing alone without the help of a letting agent, or entering the market for the first time.
Scheltema offers her perspective on the primary challenges landlords face and how to address them effectively.
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Tenant Screening Complexities
Identifying reliable tenants remains a significant concern for landlords. According to the PayProp State of the Rental Industry Survey, over 50% of rental agents cite finding quality tenants as a top challenge. The screening process involves meticulous checks on credit history, employment verification, and previous rental behaviour. However, without access to comprehensive tools and expertise, landlords may inadvertently select tenants who pose financial risks or potential legal complications.
“Tenant screening is more than just a background check; it’s about understanding the nuances of each applicant’s financial and rental history,” says Scheltema. “Landlords need to be thorough and vigilant to ensure they select tenants who will uphold the terms of the lease and maintain the property’s integrity.”
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Navigating Legal and Regulatory Frameworks
The South African rental sector is governed by intricate laws, including the Rental Housing Act and the Protection of Personal Information Act (POPIA). Landlords must ensure compliance with these regulations, which cover aspects such as lease agreements, tenant rights, and data protection. Non-compliance can lead to legal disputes, financial penalties, and reputational damage.
“Staying abreast of legal changes is crucial,” Scheltema advises. “Landlords must ensure their lease agreements and practices align with current laws to avoid potential legal pitfalls.”
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Managing Property Maintenance and Operational Costs
Maintaining rental properties involves ongoing expenses, from routine maintenance to unexpected repairs. Landlords often struggle to balance these costs while ensuring tenant satisfaction and property value retention. Additionally, managing service providers, scheduling maintenance, and handling emergencies require time and expertise that individual landlords may lack.
“Proactive maintenance is key to preserving property value and tenant satisfaction,” notes Scheltema. “Landlords should establish a maintenance schedule and budget to address issues promptly and efficiently.”
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Adapting to Market Dynamics
The rental market in South Africa is influenced by various factors, including economic conditions, interest rates, and housing demand. In Pretoria, for instance, the rental market has shown resilience, with average monthly rents for two-bedroom apartments ranging between R7,500 and R9,000, depending on the suburb.
“Too often we see landlords pricing based on bond repayments, not market value,” Scheltema notes. “An overpriced property sits vacant. A well-priced property finds a tenant quickly and retains them longer.”
“Understanding local market trends allows landlords to price their properties appropriately,” Scheltema explains. “This ensures competitiveness and reduces vacancy periods.”
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Ensuring Consistent Cash Flow
Late or missed rental payments can disrupt a landlord’s cash flow, affecting their ability to cover mortgage payments, maintenance costs, and other financial obligations. While the Western Cape boasts the lowest tenant arrears in the country, landlords elsewhere may face challenges in rent collection, necessitating proactive measures to mitigate financial risks.
“Implementing clear payment policies and maintaining open communication with tenants can help mitigate payment issues,” advises Scheltema. “It’s also beneficial to have contingency plans in place for unforeseen circumstances.”
Why Partnering with Professional Letting Agents is a Strategic Move for Landlords
Addressing these challenges requires a strategic, proactive approach, which increasingly means working with professional letting agents.
“Having a professional letting agent on your side means having access to expertise, efficiency, and peace of mind,” says Scheltema. “Professional letting agents bring structure to what can often be an emotionally and administratively taxing process.”
“Many landlords underestimate how time-consuming property management becomes once tenants are in place,” Scheltema adds. “Letting agents don’t just take the work off your plate, they help you protect and grow your investment.”
In a climate where tenant expectations are rising, legal compliance is non-negotiable, and financial pressures are very real, partnering with a letting agency is crucial. A competent letting agent safeguards the property, mediates issues, and helps ensure the rental experience is positive for both landlord and tenant.
With over 40 years of experience, Fitzanne Estates understands the risks and responsibilities of rental property ownership. Our dedicated team acts not only as letting agents, but as trusted partners in long-term property success.
Contact the Fitzanne Rentals team for your property requirements.