Lease renewals in South Africa are often treated casually, but they’re one of the biggest sources of mistakes, disputes, and compliance failures. Avoiding these errors protects landlords, tenants, and your brand. For clarity, this guide focuses on lease renewals in South Africa best practices agents can apply immediately.

❌ Error 1: Thinking a Renewal Is a Tenant’s Right

A fixed-term lease ends on its expiry date. The landlord is not obliged to extend or renew unless they choose to — and they’re entitled to decide whether to renew at all, on what terms, and with which tenant.

A renewal can be a new agreement (best practice) or a continuation of the old one (not recommended as your landlord is not getting the benefit of updated lease terms and conditions). If you are, however, using a renewal addendum, it’s important to make sure it includes updating of critical information like the contact details for delivery of notices to avoid problems later.

❌ Error 2: Skipping Lease Renewal Notices in South Africa

Almost all renewal issues stem from this step being missed. Section 14 of the Consumer Protection Act requires that tenants receive a clear notice in all cases 40–80 business days before the end of the fixed term. Also see the Rental Housing Act for complementary obligations.

Often termed the 40–80 business day notice, this is a must and must include the required information as per the CPA. Miss it, and you risk disputes and unfavourable outcomes. In lease renewals in South Africa practice, this single miss is the most common cause of tribunal disputes.

❌ Error 3: Not Updating Contact Details Formally

Tenants and landlords change email addresses, phone numbers, and physical addresses — but those updates often never make it into the lease. Later, when you send a notice (non-renewal, increase, breach), it may go to an outdated address and be invalid if challenged.

Best practice (our view): Always renew using full lease terms rather than an addendum. Leases should be updated at least annually to ensure the strongest protection for the landlord and the agent.

If you do choose to use an addendum, make sure it includes updated rent, any required deposit top-up, and the latest notice/contact details for both parties to avoid disputes — a key step in lease renewals in South Africa.

❌ Error 4: Forgetting to Adjust Deposits

If rent increases, the deposit should usually be topped up to match the new rental. Missing this leaves landlords under-secured if there’s damage or default.

❌ Error 5: Overlooking Business Risk in Lease Renewals in South Africa

Business owners and principals may not draft renewals themselves — but they carry the risk. Poorly handled renewals lead to tribunal cases, arrears, and reputational damage. Implementing a consistent, compliant renewal process protects the brand and reduces risk.

❌ Error 6: Not Updating Tenant Income Information or Confirmation

Renewals are not “set and forget”. Re-confirm the tenant’s current employment and income (latest payslips, bank statements or accountant’s letter for self-employed) and document any changes since the original lease. Without fresh verification you can miss early warning signs and expose the landlord to arrears risk. In lease renewals in South Africa scenarios, this check is often the difference between a smooth year and months of arrears. For more detail on why this matters, read our article on tenant vetting and the shocking truth behind fraudulent applications.

❌ Error 7: Skipping an Affordability Assessment on the New Rent

Always reassess affordability against the new rental amount and the tenant’s current income. Consider other obligations (debt repayments, utilities, sectional title levies passed on, etc.). An affordability assessment should be a non-negotiable part of every renewal to prevent avoidable defaults, especially in lease renewals in South Africa where inflationary increases can compound risk.

❌ Error 8: Renewing a Tenant Who Is in Breach

Never renew a tenant who is in breach of their current lease — whether due to arrears, repeated late payments, or other violations. Extending a fixed term in these cases undermines the landlord’s legal position and makes it harder to take enforcement action later.

Conclusion: Lease Renewals in South Africa — Keep It Compliant

Lease renewals in South Africa don’t have to be complicated — but they do require a consistent, compliant process. By avoiding the common errors above and using the right documentation, agents can protect landlords, reduce risk, and strengthen their businesses. We strongly believe that the best practice is to use full lease terms when renewing a lease, but we know that in practice a simple addendum is used, so to help you, we’ve prepared a free Lease Renewal Addendum (LA001) that covers the essential updates every renewal should include. Download it today and make sure your next renewal is handled with confidence.