Becoming a landlord in South Africa can be financially rewarding, but it’s not without its pitfalls. Many first-time landlords underestimate the complexities of property management. This often leads to costly mistakes. Fortunately, with a smart approach and the right support, these common landlord mistakes can be avoided.
Let’s explore the top 10 errors South African landlords make and how to steer clear of them.
1. Failing to screen tenants properly
One of the most common landlord mistakes in South Africa is not conducting thorough background checks. Skipping this step can lead to tenants who default on rent or damage property.
How to avoid it:
Use a comprehensive tenant vetting process. With Preferental’s services, landlords get automated credit, employment, and affordability checks to find the right fit from day one.
2. No written lease agreement
Verbal agreements may seem quick and easy, but they offer little protection if things go south.
How to avoid it:
Always sign a written lease compliant with South African law. Preferental offers legally binding, fully digital lease agreements that protect both parties.
3. Setting the wrong rental price
Overpricing leads to vacancies. Underpricing eats into your profits.
How to avoid it:
Research local market trends. Tools like Property24 can help, but Preferental’s pricing insights go one step further by analysing real-time market data.
4. Neglecting property maintenance
Poorly maintained properties lose value and frustrate tenants — which increases turnover.
How to avoid it:
Stay proactive with regular inspections and maintenance. Preferental helps track maintenance issues and assign service providers with ease.
5. Ignoring legal compliance
South African rental laws are strict. Ignorance is not an excuse.
How to avoid it:
Stay updated on landlord-tenant legislation, including deposit handling, eviction processes, and notice periods. Preferental ensures all actions align with the law.
6. Delayed response to tenant queries
Slow replies lead to tenant dissatisfaction and complaints.
How to avoid it:
Respond quickly and professionally. With Preferental’s tech-driven platform, tenant communication is centralised and managed efficiently.
7. Poor record keeping
Losing track of rent payments, maintenance logs, or lease agreements is risky.
How to avoid it:
Digitise your records. Preferental stores everything securely in one platform, from payments to lease terms.
8. Overlooking property inspections
Skipping entry and exit inspections can cost you dearly in deposit disputes.
How to avoid it:
Always conduct and document thorough inspections. Preferental offers guided inspection reports you can complete directly from your phone.
9. Doing it all yourself
Trying to manage everything solo becomes overwhelming, fast.
How to avoid it:
Use a smart alternative like Preferental. Our automated system simplifies everything from tenant placement to rent collection.
10. Not using a rent collection system
Chasing rent manually is outdated and unreliable.
How to avoid it:
Automate rent collection with Preferental’s automated invoices and statements, ensuring on-time payments and reducing the risk of arrears.
Preferental: The smart way to manage property
New and seasoned landlords alike fall into these traps. But with Preferental, you avoid the hassle, minimise risk, and increase returns — all in one platform. Whether you’re looking to streamline communication, automate payments, or stay legally compliant, our services have you covered.
