One of the most common questions tenants ask is if a landlord can simply decide to increase the rent whenever they choose. Receiving a message from your landlord about a rental increase can be stressful, particularly when you were not expecting it.
The good news is that, in most circumstances, a landlord cannot increase your rent without your consent.
The legal framework
Rental agreements in South Africa are governed by several legal principles and legislation, including:
- The Rental Housing Act
- The Consumer Protection Act (CPA)
- The general principles of the Law of Contract
A core principle of contract law is that no party may change the terms of an agreement without the consent of the other party. This principle applies equally to rental agreements.
Because rent forms part of the terms of a lease agreement, a landlord may not simply decide to increase the rent without following the correct legal process.
When is a rental increase lawful?
A rental increase is generally lawful when it is not imposed unilaterally (without consent) and occurs in accordance with the lease agreement or the law.
Examples include:
An increase clause in the lease
Many lease agreements contain a clause providing for an automatic rental increase or a specific increase after a certain period of time. If you agreed to such a clause when signing the lease, the increase may be valid.
Renewal of a lease agreement
When a fixed-term lease is approaching its expiry date, a landlord may propose a new rental amount for the renewal period, provided the required notice is given.
Month-to-month leases
Where a tenant occupies the property on a month-to-month basis, a landlord may increase the rent if reasonable written notice is given.
What a landlord can’t do
Even where a landlord is lawfully allowed to increase the rent, there are important limits.
A landlord can’t:
- Increase the rent during a fixed-term lease unless the increase is specifically stated in the lease agreement.
- Increase the rent without providing proper notice.
- Implement an increase that is unreasonable or unfair.
Examples of potentially unfair increases may include:
- Small increases being enforced every month.
- A substantial increase that doesn’t match the agreed rental amount, such as suddenly expecting a tenant to pay double the original rent.
- Ignoring a specific increase formula or calculation method contained in the lease agreement.
Where a lease specifies how rental increases are to be calculated, a landlord can’t simply deviate from that method.
Notice periods
Proper notice is an important requirement when increasing rent. Different notice periods could apply for different types of lease agreements.
Fixed-term leases
Where the Consumer Protection Act applies, which is usually the case with ordinary fixed-term residential leases, a landlord must generally provide between 40 and 80 business days’ notice before the lease expires. This notice should set out the proposed terms of the new lease, including any increase in rent.
Month-to-Month Leases
For month-to-month leases, a landlord should provide at least one full rental cycle’s notice, which is typically 30 days.
Failure to provide the required notice may render the increase invalid.
Can you refuse a rental increase?
Many tenants assume that once a landlord has provided notice of an increase, they have no choice but to accept it. This is not necessarily the case. You are still required to acknowledge and consent to the proposed increase.
If you are unhappy with the increase, you may decline it. In this case, the existing lease agreement will simply come to an end upon expiry, and no new lease agreement will come into existence.
You may also challenge or dispute the increase and attempt to negotiate with the landlord. If you decide to dispute the increase:
- The dispute should be communicated in writing.
- You need to continue paying your current rental amount while the dispute is ongoing.
- If the matter cannot be resolved, you may lodge a complaint with the Rental Housing Tribunal.
The Rental Housing Tribunal process is free of charge and its decisions are legally binding.
What should you do if your landlord demands increased rent without notice?
If your landlord demands a higher rental amount without providing proper notice, consider taking the following steps:
Raise the issue immediately
Query the increase as soon as possible. It is best to do so in writing, such as via email or WhatsApp, to ensure that a record of the communication exists.
Continue paying your current rent
Do not pay the increased amount until the matter has been properly addressed. At the same time, do not withhold rent entirely, as this may place you in breach of your lease agreement.
Request proper written notice
Ask the landlord to provide:
- Written notice of the increase.
- Confirmation of the notice period.
- The date on which the increase is intended to take effect.
It is important to remember that a landlord cannot threaten you with eviction just because you have questioned an unlawful increase.
Approach the rental housing tribunal
If the landlord refuses to follow the correct process or continues demanding the increased amount, you may approach the Rental Housing Tribunal for assistance.
Know your rights as a tenant
Rental increases must be implemented lawfully and fairly. While landlords are entitled to increase rent in certain circumstances, they cannot simply impose new rental amounts without following the proper legal process.
Understanding your rights can help you avoid unnecessary disputes and ensure that any increase complies with both your lease agreement and the law.
Share this video with any tenants you know to keep them in the loop.
Disclaimer: This article provides general information only and does not constitute legal advice. Every situation is unique and requires consideration of its specific facts and circumstances.
If you are unsure whether a rental increase is lawful or require assistance dealing with a dispute with your landlord, our team can help.
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