Becoming a landlord is a big milestone. Whether you bought a property for investment or you have decided to move out of your current property and rent it out, the transition from homeowner to landlord requires a shift in perspective. You are no longer just maintaining a house, but rather you are running a business.
While the short-term rental market has its appeal, there is a strong case for going the long-term route.
“Short-term letting can be lucrative, but it is labour-intensive and seasonal,” says Giel Viljoen, Principal at Leapfrog Stellenbosch. “Long-term rentals offer stability. You have a consistent income stream, lower turnover costs, and less wear and tear on the furnishings.”
Another thing to consider is that we're currently in a property market where locals often feel squeezed out by holiday rentals. Offering a long-term option provides housing in a competitive sector and gives a tenant a place to call home.
However, to attract a quality tenant who will respect your investment, the property needs to be correctly prepared, priced and compliant.
Finding the pricing sweet spot
One of the first mistakes new landlords make is pricing based on their own financial needs, such as covering bond repayments, rather than on market value.
“Tenants are savvy and have probably done their research. They know what similar properties in the area are worth,” cautions Viljoen. “If you price too high, your property will sit empty, and a vacant month costs you more than a slightly lower rental rate ever would.”
Do your research. Look at property portals to see what similar homes in your neighbourhood are renting for. Factor in amenities like parking, security and fibre connectivity. The goal is to find a price point that attracts immediate interest while still generating a fair amount of income for you.
Work with a trusted property professional
While self-managing is possible, first-time landlords often underestimate the administrative burden and legal risks involved.
“A rental agent is your buffer and your guide,” notes Viljoen. “The most critical part of long-term renting is vetting the tenant. You need a professional who can perform thorough credit checks, verify income, and call references to ensure the applicant has a history of good conduct.”
An agent can also be an unbiased middleman. They would handle tough conversations about late payments or inspections and ensure the relationship remains professional.
Compliance is non-negotiable
Before a tenant moves in, you must ensure the property is legally compliant and safe. It is about liability.
You are required to have valid compliance certificates for electrical installations and, if applicable, gas installations and electric fences.
“Don't wait until the last minute to check these,” Viljoen advises. “If your electrical compliance certificate (COC) has expired or you’ve done renovations since the last one, get it sorted before marketing the property. You also need to ensure that the property meets basic health and safety standards. So, no damp, no mould, and secure locks on all doors.”
The lease agreement
The lease is the backbone of the landlord-tenant relationship. A generic template downloaded from the internet often leaves gaps that can cause headaches down the line.
Your lease needs to outline the responsibilities of both parties clearly. It should cover the details of the deposit, including the amount and where it will be invested. It must also outline maintenance responsibilities; generally, structural maintenance, such as the geyser or roof, falls to the landlord, while general upkeep, like pool cleaning, garden maintenance, and replacing lightbulbs, is the tenant's duty. The contract should also outline when and how often inspections will take place, set out clear house rules regarding pets, smoking, and subletting, and allow the tenant room to add their own personal touches like a splash of paint colour, shelves or pictures”.
“A tight lease protects the tenant as much as the landlord,” says Viljoen. “It ensures they have quiet enjoyment of the property and clarity on what they are paying for.”
Practical preparation
Finally, look at your property through the eyes of a prospective tenant.
“A fresh coat of paint is the single most effective way to make a property feel new and clean,” suggests Viljoen. Stick to neutral colours like whites or light greys. You want the tenant to be able to visualise their own furniture and style in the space.”
Ensure everything works. Fix the leaky tap, service the air conditioner, and repair that loose cupboard hinge. If you hand over a property in pristine condition, you set a psychological standard for how the tenant should return it.
Entering the rental market is a long-term commitment that, if done well, can build wealth.
“It’s about finding the balance between protecting your asset and being a fair, approachable landlord,” concludes Viljoen. “When you prepare well, price correctly, and treat the arrangement with professionalism, you are far more likely to secure a tenant who treats your home as their own.”
