As Mpumalanga’s rental market starts to cool, landlords and tenants are facing a delicate balancing act. With rising property rates, water, and electricity tariffs, many property owners are considering rent increases — but tenants are still feeling the pinch from the increased cost of living. Missteps can quickly strain relationships, trigger disputes, or even cause vacancies.
It’s never an easy conversation to have. However, landlords can still tackle it sensitively and reach an increase that matches their rental goals while keeping tenants happy. Here’s a look at rental pricing trends in the province and tips on making rental increases fair for all.
Mpumalanga rental pricing trends
According to the latest PayProp Rental Index, year-on-year growth in Q2 2025 was just 0.1%, with average rent inching up from R8,484 in Q2 2024 to R8,493. This is largely because tenants are feeling the squeeze from high debt repayments and rising utility costs, while the province’s affordable property prices are drawing first-time buyers looking for good value.
At the same time, a healthy supply of mid-range rentals (R5,500–R10,000 per month) is keeping upward pressure on prices limited. There is good news for landlords, though. Arrears have fallen to 19.5% from 20.94%, with the average arrears amount at 69.9%, dropping from 72.9% in 2024. The stronger tenant payment performance should provide more confidence to consider measured rent increases.
Navigating rent hikes in a softening market
Many in the rental business still wonder, “how much can a landlord increase rent?”. In a cooling market, this question becomes even more important. Some may assume annual hikes of 10–12% are standard, however, rental escalation in South Africa in 2025 has slowed significantly. PayProp reports a national year-on-year increase of just 5% (Q2 2024 vs Q2 2025), signalling that landlords need to be realistic and sensitive to market conditions. While there’s no legal cap on how much a landlord is allowed to raise rent, the increase must still be fair, reasonable, and aligned with the current market, especially where tenants are under financial pressure.
Know when and how to raise rent: Rent is typically increased at the end of a lease, unless your contract allows mid-term hikes. In most cases, rent can only be increased once every 12 months for a one-year lease. A landlord should familiarise themselves with the Rental Housing Act and the Consumer Protection Act (CPA), which regulate rental agreements.
Make increases manageable: Gradual, predictable increases are easier for tenants to absorb. Instead of a single 10% jump, consider 2–3% annual hikes. Tenants who see a fair, stepwise approach are less likely to leave, reducing vacancy risk. Factor in inflation, property rates, and utility costs to justify your changes, while keeping rates aligned with comparable local properties. Check online rental listings or use a Lightstone rental report to ensure your increase is competitive and reasonable.
Give notice and be communicative: Most landlords must give tenants written notice before increasing rent, usually at least 30 days. A well-drafted rental increase letter should include property details, current terms, new amount, effective date, notice period, payment instructions, and landlord contact details. Even if your lease allows flexibility, giving at least 30 days’ notice demonstrates professionalism and builds trust, especially important in a softer market. For significant hikes, consider a phone call to explain the reasons and answer questions.
Add value where possible: Linking a rent increase to property improvements, such as new appliances, painting, or general maintenance, reinforces the value tenants receive. This can make increases feel more reasonable and improve retention.
Seek professional services: Raising rent doesn’t have to harm tenant relationships, even in a cooling market. With clear communication, modest hikes, and well-maintained properties, landlords can preserve both profitability and goodwill. If managing this feels complex, consider using a professional managing practitioner. Their market expertise can be invaluable in negotiations, determining fair escalation, and creating legally sound rental contracts.
Hand over your rental hassles
Raising rent in a cooling market can be tricky, but with Kellaprince Properties’ full-service monthly property management, you don’t have to do it alone. From rental collections and tenant statements to utilities, repairs, and maintenance, we handle the day-to-day, ensuring any rental adjustments are smooth, fair, and transparent. Our services also include full landlord audits, trust account audits, and detailed reporting, so you can focus on returns while tenants enjoy peace of mind.
