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The recent changes to the Rental Housing Act place certain responsibilities on landlords and tenants that may serious consequences if not complied with, including strict penalties. One of the notable updates is the strengthened requirement for written lease agreements. The 2025 amendments now impose stricter penalties for non-compliance, with fines of up to R15 000 for landlords who fail to provide written agreements upon a tenant's request. “Written lease agreements are no longer just best practice – they're an essential legal requirement," said Dell. "These documents must clearly outline all terms and conditions, including rental amounts, payment dates, deposit details, maintenance responsibilities, and notice periods.” The amendments also introduce more stringent regulations regarding rental deposits. Landlords must now provide written proof that deposits are held in interest-bearing accounts within 14 days of receipt. Additionally, the timeframe for returning deposits has been standardised to seven days after lease termination if there are no disputes. For tenants, the updates reinforce their right to privacy and habitability as landlords must now provide at least 24 hours' written notice before property inspections, except in emergencies. The amendments also clarify the definition of "habitable dwelling," specifying minimum standards for structural soundness, waterproofing, and essential services. The updates have also strengthened the Rental Housing Tribunal, enhancing its powers to resolve disputes efficiently. The Tribunal can now issue binding rulings more quickly, with a new mandate to resolve complaints within 30 days of filing. Dell recommends that landlords update all lease agreements to comply with the latest requirements, establish systems for deposit management and documentation, maintain records of property inspections and ensure properties meet the clarified habitability standards. Tenants on the other hand must request written lease agreements if not provided, confirm that deposits are in interest-bearing accounts, document the property's condition at the start of tenancy and understand the expanded definition of habitability rights. Real Estate Services South Africa said it believes these updates ultimately benefit the entire rental ecosystem by promoting transparency and fairness. According to the Landlord Association of South Africa(LASA), while the 2025 Rental Housing Act updates aim to promote transparency and fairness, several provisions could have unintended consequences that risk weakening the private rental market in South Africa. It said that while stricter penalties for missing written lease agreements are sensible, imposing penalties of up to R15 000 for non-compliance is disproportionate and could discourage small or informal landlords from participating in the market. LASA said deposit management and new administrative burdens mandating proof of deposits in interest-bearing accounts within 14 days create a heavy administrative and financial burden, especially for small-scale landlords with limited banking access or digital literacy. In practice, it said this may push landlords to either increase upfront rents to cover risk or withdraw from renting altogether, reducing rental stock. It added that while the seven-day deposit return rule is designed to protect tenants, the short seven-day return period is unrealistic. “Landlords often need time to assess damages, obtain repair quotes, and resolve disputes. Forcing early returns could result in landlords withholding more money upfront (higher deposits) or avoiding certain tenants entirely, leading to greater discrimination in tenant selection.” LASA said taken together, these changes shift more obligations, costs, and risks onto landlords. “Larger, institutional landlords may absorb them, but smaller private landlords - the backbone of South Africa’s rental housing market - are likely to retreat.
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