Free Rental Agreement Template South Africa (Rental Housing Act Compliant)

A written rental agreement is the single most important document in the landlord-tenant relationship. It defines what each party can expect, what they owe, and what happens when things go wrong.

Yet many South African landlords still rent out properties on a handshake or a one-page document they found online years ago. If that sounds familiar, this guide is for you.

Why You Need a Written Lease

Oral agreements are technically valid under South African law, but they are a nightmare to enforce. Without a written lease:

You have no proof of the agreed rent amount
You cannot demonstrate what condition the property was in at handover
Deposit disputes become your word against the tenant’s
Eviction proceedings are significantly more difficult

The Rental Housing Act strongly favours written leases and requires specific information to be included. A compliant written lease protects both you and your tenant.

What the Rental Housing Act Requires in a Lease

Section 5 of the Rental Housing Act sets out the minimum content for a residential lease. Your agreement must include:

Names and addresses of both landlord and tenant
Description of the property — physical address, unit number, number of rooms
Amount of rent and the date it is due each month
Deposit amount and details of the interest-bearing account where it will be held
Lease period — start date, end date (if fixed-term), or confirmation that it is month-to-month
Obligations of each party regarding maintenance, repairs, and insurance
Notice period for termination
List of defects known at the start of the lease
Inventory — list and condition of all fixtures, fittings, and contents provided with the property

Missing any of these elements doesn’t invalidate the lease, but it creates gaps that tenants — or Tribunals — can exploit.

Clause-by-Clause Breakdown of a Compliant Lease

1. Parties and Property

Clearly identify who is renting to whom, and what exactly is being rented. Include:

Full legal names and ID numbers of all parties
Physical address of the rental property
Erf number and sectional title unit number (if applicable)
Whether parking, storage, or garden areas are included

2. Lease Term and Renewal

Specify whether the lease is:

Fixed-term (e.g. 12 months from 1 March 2026 to 28 February 2027) — state whether it converts to month-to-month at expiry or requires renewal
Month-to-month (periodic) — state the notice period for termination (one calendar month is standard)

Under the Consumer Protection Act (CPA), tenants on fixed-term leases can cancel with 20 business days’ notice, subject to a reasonable early termination penalty. Include a clause specifying this penalty (e.g. one or two months’ rent).

3. Rent and Payment Terms

Be specific:

Monthly rent amount in rands
Due date (typically the 1st of each month)
Payment method (EFT to a specified bank account)
What happens if rent is late (grace period, if any, and consequences)
Annual escalation rate (e.g. 8% per annum, or CPI-linked)

Avoid open-ended escalation clauses. A clause that says “rent may be increased at the landlord’s discretion” is likely to be struck down as unfair.

4. Deposit

Cover all the legal requirements:

Deposit amount (typically one month’s rent)
Confirmation that the deposit will be held in an interest-bearing account
Name of the financial institution
Conditions under which deductions may be made
Timeline for return (14 days after joint inspection, 21 days without)

For full details on deposit obligations, see our deposit rules guide.

5. Maintenance and Repairs

Clearly allocate responsibility:

Landlord: structural repairs, plumbing and electrical systems, external painting, roof repairs, compliance with building regulations
Tenant: day-to-day upkeep, replacing light bulbs, maintaining the garden (if applicable), keeping the property clean, minor repairs up to a stated amount (e.g. R500)

Include a clause requiring the tenant to report maintenance issues promptly and in writing.

6. Use of the Property

Specify:

The property is for residential use only
The maximum number of occupants
Whether pets are allowed (and any conditions — type, size, pet deposit)
Whether subletting is permitted (most leases prohibit it without written consent)
Conduct expectations (no illegal activity, compliance with body corporate rules)

7. Inspections

Include clauses for:

Move-in inspection — both parties inspect the property and sign a condition report before occupation
Move-out inspection — a joint inspection before the lease ends
Periodic inspections — the landlord may inspect with reasonable notice (at least 24 hours)

8. Termination and Breach

Define how the lease can end:

Expiry of fixed term — what happens at the end date
Notice by either party — required notice period
Breach — what constitutes a breach, the notice period to remedy (typically 20 business days under the CPA), and the right to cancel if not remedied
Early termination penalty — a reasonable amount (one to two months’ rent is standard)

9. Special Conditions

This is where you add anything specific to your property:

Generator or inverter usage rules
Water restrictions or borehole access
Braai area or communal facility rules
Load-shedding arrangements
Any existing damage or defects (document them here and in the inspection report)

Clauses That Are Unenforceable

Including these in your lease won’t help you — they may be declared void by a Rental Housing Tribunal:

Waiver of Tribunal rights — you cannot prevent a tenant from approaching the Tribunal
Blanket seizure of goods — you cannot take a tenant’s belongings as security for unpaid rent
Unreasonable penalties — a clause requiring a tenant to pay 12 months’ rent as a cancellation penalty would likely be struck down
Discrimination — any clause that discriminates on prohibited grounds is void
Automatic renewal traps — clauses designed to lock tenants into renewals without clear opt-out mechanisms are vulnerable to challenge under the CPA

How Indlu Auto-Generates Compliant Leases

Creating a legally compliant lease from scratch is time-consuming and error-prone. Indlu’s lease generation feature:

Produces a Rental Housing Act-compliant agreement in minutes
Pre-populates property details, tenant information, and financial terms from your dashboard
Includes all mandatory clauses and disclosures
Allows you to add custom special conditions
Generates a move-in inspection checklist linked to the lease
Supports digital signatures for remote lease execution

No more generic templates that miss critical clauses. No more paying an attorney R3,000 every time you sign a new tenant.

Tips for Signing a Lease

Both parties should read the entire lease before signing — never rush this step
Initial every page to prevent substitution of pages after signing
Both parties keep a signed copy — Indlu stores it digitally for instant access
Complete the inspection report on the same day as lease signing, or on the day of occupation
Collect the deposit before handing over keys — never allow occupation without a signed lease and paid deposit

Frequently Asked Questions

Can I use the same lease template for all my properties? Yes, as long as you update the property-specific details (address, rent amount, special conditions) for each tenancy. A good template is designed to be reusable.

Do I need a lawyer to draft my lease? Not necessarily. A well-structured template that covers all Rental Housing Act requirements is sufficient for most standard residential leases. However, if you have complex arrangements (commercial-residential mixed use, multiple tenants, short-term lets), legal advice is worth the investment.

Can I add a clause prohibiting smoking? Yes. Smoking restrictions are a reasonable condition of the lease and are enforceable, provided they are clearly stated.

What language should the lease be in? The lease should be in a language that both parties understand. In practice, most South African leases are in English, but the tenant has the right to request a translation or explanation of terms they don’t understand.

Is an electronic signature valid? Yes. The Electronic Communications and Transactions Act (ECTA) recognises electronic signatures as valid for most contracts, including residential leases.

Generate compliant leases in minutes — no legal fees, no generic templates. Try Indlu free.