Owning a rental property can be a smart move, especially in today’s tough economic climate where renting remains the more appealing option for many. With steady tenant demand, your property can provide reliable income and long-term growth. But when tenants start falling behind on payments, it can quickly become stressful and throw your cash flow off balance.
If you’re a landlord in Mpumalanga, you might already be feeling the pinch. The PayProp Rental Index Q1 2025 shows that 20.1% of tenants in the province are behind on payments — up from 19.3% a year ago and higher than the national average of 17%. The upside? With the right approach, you can prevent tenant arrears from happening and take action to protect your investment.
What is the meaning of rent arrears?
A tenant arrear happens when rent is not paid by the due date specified in the lease agreement. Once rent is overdue, you need to issue a written notice of breach, which gives the tenant a reasonable period, usually 20 business days, to pay the overdue rent and resolve the breach.
Remember, the Rental Housing Act 50 of 1999 protects your rights as a landlord to receive prompt and regular payments for your rental. So, following non-payment, the tenant is in breach of their lease and, depending on the circumstances, you can take immediate legal action.
How to prevent tenant arrears from happening
Of course, preventing tenant arrears should always be the aim, and this starts long before a payment is late. The key is to build strong foundations, set clear expectations, and maintain consistent communication.
- Screen carefully: Do thorough background checks, including credit, employment, and previous landlord references. Partnering with a trusted property management company can make this easier.
- Set clear terms: A well-written lease agreement should spell out rent due dates, grace periods, penalties, and what happens if payments are missed.
- Stay proactive: Use reminders (SMS or email) a few days before rent is due, and follow up quickly if a payment is late — even just by a few days. Rental payment software like PayProp, reOS, or TPN RentBook can automate this process for your peace of mind.
- Be approachable: If a tenant runs into trouble, encourage them to talk to you right away. Tackling issues early is easier (and less costly) than dealing with months of arrears, and this is where open channels of communication can be helpful.
- Offer flexible options: Make payments as easy as possible with a direct debit, bank transfer, cash, or online through a tenant portal.
- Encourage good habits: Consider incentives like small discounts, gift vouchers, reduced future rental increases, or other perks for tenants who pay early and consistently.
- Build a buffer: Set aside a reserve fund so you’re covered if payments are delayed.
- Sign up for rental insurance: This can protect you against missed rental payments, helping you safeguard cash flow if a tenant defaults.
Taking action against a defaulting tenant
Even by putting your best foot forward, you may still find yourself with a tenant who falls behind on rent. It’s a difficult situation, but one where staying calm, following the law, and acting strategically can protect both your property and your income.
- Offer a short grace period: While the law doesn’t require indefinite extensions, allowing 5–7 extra days (if included in your lease) can give tenants breathing room without putting you at risk. This small flexibility can preserve the tenancy and prevent vacancy losses.
- Consider structured payment plans: If the tenant’s financial distress is temporary and you’ve enjoyed a good relationship with them, you could split arrears over 2–3 months. Being firm but flexible may help you avoid the cost and hassle of eviction.
- Charge late fees where applicable: If your lease includes a late payment clause, you’re entitled to apply it. Just ensure fees are reasonable and transparent. Clear accounting helps maintain trust while encouraging timely payment.
- Send a formal notice of breach: If payments remain outstanding, issue a written notice giving the tenant up to 20 business days (depending on your lease agreement and Consumer Protection Act rules) to settle. This step is legally required before further action.
- Follow the legal eviction process: If arrears aren’t resolved, you must apply to the court for an eviction order. Once granted, the sheriff of the court enforces the eviction. Skipping this process, like locking out tenants, harassing them and their family, or cutting utilities, is illegal and can backfire.
- Use the Rental Housing Tribunal when possible: For disputes over arrears or unfair practices, the Tribunal offers a free, faster alternative to court with binding rulings.
- Seek legal support early: An eviction attorney can guide you through notices, documentation, and court representation, reducing delays and costly mistakes.
Tenant arrears FAQs
1. Can a tenant be evicted immediately?
No, you cannot evict a tenant immediately. The first step is to send your tenant a written notice of breach highlighting the outstanding amounts and provide a reasonable period for the tenant to pay the arrears. If your tenant doesn’t respond to the notice or refuses to pay, you can cancel the lease agreement and apply to the Magistrate’s Court for an eviction order. If this is granted, the sheriff will remove the tenant from the property.
2. How long can a tenant stay without paying rent in South Africa?
A tenant in South Africa can stay without paying rent for an indefinite period until a landlord obtains a court-ordered eviction. This is a process that typically takes weeks to months, depending on the specific circumstances and any legal challenges. The landlord must first issue a formal breach notice, usually demanding payment within a set period, before applying to the court for an eviction order under the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIE).
3. Can a landlord evict a tenant even if they have nowhere to go?
Yes, a landlord can legally evict a tenant in South Africa even if they have nowhere to go, but they must follow a strict legal process, as PIE protects tenants.
Keep your rental business on track
With the right agency by your side, you can take the stress out of tenant arrears. Kellaprince Properties can help you screen tenants thoroughly to reduce the risk of non-payment with a tenant credit and affordability check via TPN. Our property management services keep track of rental payments so you can rest easy knowing your income is protected. List your property with our team today.
