Renters often focus primarily on the monthly rental amount when evaluating affordability, but the true cost of renting extends far beyond that figure.
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Rental prices continue to climb across many parts of South Africa, hence tenants are increasingly focused on securing a property that fits within their monthly budget.
However, while the advertised rental amount may appear manageable, many renters underestimate the added costs that come with leasing a home, says Adrian Goslett, CEO and regional director of RE/MAX Southern Africa.
He says understanding these hidden expenses is essential for effective financial planning and long-term stability.
“Renters often focus primarily on the monthly rental amount when evaluating affordability, but the true cost of renting extends far beyond that figure. To avoid financial strain, tenants need to take a comprehensive view of all related expenses and ensure that their overall housing costs align with their income and lifestyle,” Goslet says.
The real estate agency says one of the most commonly overlooked costs is the rental deposit. It says that usually this upfront payment amounts to one or two months’ rent and can place significant pressure on tenants’ cash flow at the start of a lease.
Additionally, RE/MAX says tenants may also be required to pay the first month’s rent in advance, alongside any administrative or lease preparation fees.
Utility costs are also an important consideration. While some rental properties include certain utilities in the monthly rent, most require tenants to cover electricity, water, and refuse removal separately, says Goslett.
“Municipal services and levies can further impact a tenant’s monthly budget. In some cases, landlords may have specific charges, such as refuse or basic service fees, that they require tenants to pay.
"Prospective renters should carefully review their lease agreements to understand exactly which costs they are liable for before signing.”
While landlords are generally responsible for structural maintenance and major repairs, the CEO says tenants are often expected to cover the cost of day-to-day upkeep, such as replacing light bulbs, maintaining gardens (if applicable), and addressing minor plumbing or wear-and-tear issues. Over time, these small expenses can also add up, he says.
For tenants moving into secure estates or apartment complexes, RE/MAX says additional costs may include parking bay rentals, access tag deposits, or penalties for lost remotes and access cards.
Insurance is another important, yet often neglected, consideration, the real estate company says. “While landlords insure the building itself, tenants are responsible for insuring their personal belongings.
"Without adequate contents insurance, renters risk significant financial loss in the event of theft, fire, or even water damage.”
Inflation and annual rental escalations also need to be factored into long-term affordability, Goslett says.
He adds that most lease agreements include an annual escalation clause, typically ranging between 5% and 10%. He says tenants who stretch their budget to secure a property may find themselves under pressure when the rent increases at renewal time.
According to RE/MAX, careful planning and transparent communication with landlords or rental agents can help tenants avoid financial surprises.
It says prospective renters are encouraged to request a full breakdown of expected monthly and one-off costs before committing to a lease.
“Creating a detailed housing budget that includes rent, utilities, insurance, transport, and an emergency fund can provide greater financial security.
“When it comes to renting, true affordability requires looking beyond the headline rental figure. By understanding and preparing for the hidden costs associated with renting, tenants can make more informed decisions and protect their financial well-being in the long term. Relying on the advice of a reliable rental agent can also help tenants avoid costly mistakes,” Goslett says.
Reacting to the Budget Speech delivered by Finance Minister Enoch Godongwana last month, Rhys Dyer, CEO of the ooba Group, says for landlords, like sellers, the clear advantage is certainty, as no new property-related taxes or policy changes have been introduced.
However, he says rising municipal charges, utilities, maintenance and compliance costs remain realities, requiring careful yield management as the days of ‘set and forget’ rental prices are long gone.
Tenants can take comfort in a steadier fiscal and economic backdrop that reduces the likelihood of aggressive rent hikes, Dyer says.
The CEO shares that the 2026 Budget builds on the momentum the residential property sector has gained since the current rate-cutting cycle began in September 2024.
“Since September, our data has consistently pointed to a sustained, steady rise across key indicators,” says Dyer, pointing to a 9% year-on-year rise in the volume of granted home loans originated by ooba Home Loans as well as a 17% year-on-year increase in the value (as at Q4 ’25).
“This momentum is underpinned by solid growth in the average national purchase price (currently up by 6.5% year-on-year) and increased support for homebuyers by the country’s major banks through steady home loan approval rates and attractive concessions to prime, with an average weighted rate concession of -0.68% below prime achieved for our customers in February 2026.”
According to ooba Home Loans, while affordability conditions are easing, household finances can change quickly, which makes it essential for buyers to secure the most competitive interest rate possible on their home loan to protect their long-term financial sustainability.
“Comparing multiple quotes through a home loan comparison service like ooba Home Loans is the best way to turn the Budget’s affordability gains into lasting value on your home purchase,” Dyer says.
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