As South Africa’s rental market enters its busiest seasonal period, landlords are being urged to rethink automatic rental increases and focus instead on smarter, tenant-centric strategies to protect long-term returns.
The start of the year traditionally triggers a surge in tenant movement, driven by practical lifestyle changes such as relocating closer to schools, changing jobs, retiring, or moving nearer to family support networks. While this annual churn has often been viewed by landlords as an opportunity to increase rentals, industry experts caution that current economic conditions call for a more measured approach.
According to Ephraim Zaslansky, a director at Johannesburg-based property group FIRZT Realty, affordability has become the dominant factor shaping tenant decision-making.
“The total amount of personal debt outstanding in South Africa now exceeds R2 trillion,” says Zaslansky. “PayProp data shows that tenants spend close to 48% of their net income on debt repayments, with a further 31% going towards rent. Even with interest rate reductions over the past year, many households remain under severe financial pressure.”
He adds that tenants are fully aware that 2026 will likely bring increases in school fees, medical aid premiums, insurance, municipal charges and taxes. “While these costs are unavoidable, housing costs are not. As a result, tenants on the move are prioritising affordability and location so they can reduce expenses, accelerate debt repayment and improve their financial resilience.”
Many tenants, he notes, are also actively trying to cut rental costs in order to save towards a deposit and transition into home ownership.
At the same time, tenants in major economic hubs are facing more choice than they have in years. Zaslansky points to a noticeable increase in new residential developments, particularly in Johannesburg, located close to business districts and transport corridors. This growing supply is placing pressure on older rental stock to remain competitive.
“In this environment, landlords who rely solely on rental increases to improve returns may find themselves facing longer vacancies,” he warns. “A vacant property can quickly cost more than a modest or deferred increase.”
He explains that a 4% inflation-related increase on a property renting at the national average of around R9,300 per month would generate roughly R4,500 in additional income over a year. “But a single month of vacancy could cost more than double that amount if tenants view the rental as overpriced.”
Adrian Goslett, CEO and Regional Director of RE/MAX Southern Africa, agrees that market-related pricing and tenant retention are becoming increasingly important.
“While demand for rental accommodation remains solid in well-located areas, affordability is now the defining factor,” says Goslett. “Landlords who push for above-market escalations without considering local conditions risk higher turnover and downtime. In many cases, retaining a reliable tenant at a fair rental delivers better long-term returns.”
Both experts emphasise that improving a property’s overall value proposition is far more effective than relying on rental hikes alone.
Zaslansky says practical steps landlords can take include ensuring properties are well maintained, with fresh paint, functioning appliances, secure doors and windows, and well-kept common areas. “First impressions matter, and poor maintenance often leads to longer vacancy periods.”
He adds that features once considered optional are now essential. “High-speed fibre readiness, prepaid electricity and water meters, energy-efficient lighting and secure parking are increasingly expected. Excellent security is non-negotiable, while gas stoves, solar geysers or heat pumps can significantly improve affordability for tenants.”
Goslett notes that properties offering tangible lifestyle benefits tend to perform best. “Tenants are prepared to pay a premium for value, but that value must be clear. Homes that are energy-efficient, well managed and competitively priced attract stable, long-term tenants.”
Flexibility is another key factor. Offering varied lease terms, staggered escalation clauses, or modest increases in exchange for longer lease commitments can appeal to tenants who are budgeting carefully.
Pricing remains critical. Rentals vary widely between provinces, cities and even suburbs, and landlords are advised to ensure their pricing aligns with comparable properties in the same area to secure quicker placement and sustained occupancy.
Both experts stress the importance of professional support. Working with experienced letting agents can help landlords accurately price rentals, screen tenants thoroughly, reduce vacancy periods through proactive marketing, and ensure all lease documentation is legally compliant.
“In the current market, landlords who acknowledge tenant realities and focus on value, convenience and affordability are far more likely to achieve stable occupancies and reliable income growth,” Zaslansky concludes.
Goslett agrees, adding that a long-term mindset is key. “Smart rental strategies in 2026 will be less about pushing limits and more about building sustainable, mutually beneficial landlord-tenant relationships.”
