The start of the year is always a busy period for rentals. In 2026, however, the usual seasonal movement comes with a clear warning for landlords. Automatic rent increases are no longer a given. Pricing accuracy, tenant retention and overall value now play a far bigger role in protecting long-term returns.
Why early-year tenant movement matters more in 2026
January and February typically trigger a wave of relocations. Families move closer to schools. Professionals change jobs or shorten commutes. Retirees downscale or relocate closer to support networks. In previous years, this turnover often gave landlords the confidence to push rentals higher.
This year is different.
Household finances remain under pressure. Tenants are more cautious, and pricing missteps are being punished quickly through longer vacancy periods and slower take-up.
Affordability is driving tenant decision-making
Affordability has become the dominant factor shaping rental choices.
Many South African households are still servicing high levels of personal debt. Even with recent interest rate relief, a large share of monthly income is absorbed by debt repayments and housing costs. At the same time, tenants are preparing for higher school fees, medical aid contributions, insurance premiums, municipal charges and taxes in 2026.
While many of these costs are unavoidable, housing is not. As a result, tenants who are on the move are actively seeking ways to reduce their monthly rental spend, shorten commutes and improve overall financial resilience.
A growing number are also using the opportunity to cut rental costs in order to save towards a deposit and transition into home ownership.
More choice is shifting the balance of power
In major metros, tenants now have more options than they have had in years.
New residential developments near business nodes and transport corridors have increased available stock, particularly in urban centres. This growing supply is placing pressure on older rental properties to remain competitive on both price and features.
In this environment, landlords who rely solely on annual escalations to improve returns risk longer vacancies. Even a modest vacancy can quickly outweigh the benefit of a higher rental.
Retention often beats escalation
Keeping a reliable tenant at a market-related rental often delivers stronger long-term returns than pushing for above-market increases.
Stable tenancies reduce vacancy risk, marketing costs, administrative effort and wear and tear. In many cases, a fair rental paired with a dependable tenant produces more predictable income over time than frequent turnover at higher asking prices.
Improving value matters more than pushing rent
Tenants are still willing to pay for value, but that value must be clear and tangible.
Well-performing rentals are typically well maintained, clean and functional. Fresh paint, working appliances, secure doors and windows, and tidy common areas all contribute to faster placement and better tenant retention.
Features that were once seen as optional are now expected. Fibre readiness, prepaid electricity and water, energy-efficient lighting and secure parking have become standard requirements. Strong security is non-negotiable, while gas cooking, solar geysers or heat pumps can materially reduce monthly utility costs and improve affordability.
Flexibility is becoming a competitive advantage
Lease flexibility is playing a growing role in tenant decisions.
Landlords who offer longer leases with moderated escalations, staggered increases or incentives for extended commitments often secure tenants more quickly and retain them for longer. For households budgeting carefully, predictability is as important as price.
Pricing must reflect local reality
Rental pricing varies widely between provinces, cities and even neighbouring suburbs. Landlords are advised to benchmark their rentals against comparable properties in the same area, rather than relying on national averages or historical increases.
Overpriced rentals sit. Correctly priced rentals move.
Every rental listing on ImmoAfrica includes an average rental benchmark for that specific area, based on live market data. This allows tenants and landlords to quickly see what similar properties are renting for nearby, making it easier to judge whether a listing is fairly priced, over-market, or represents good value. It’s a practical way to ground rental decisions in real numbers, not guesswork.
Professional support reduces risk
Experienced letting agents remain an important asset in a more competitive rental market.
Accurate pricing, thorough tenant screening, proactive marketing and legally compliant lease documentation all contribute to shorter vacancies and fewer disputes. In a market where margins matter, avoiding costly mistakes is critical.
The takeaway for landlords in 2026
The rental market remains active, but it is far more selective.
Landlords who acknowledge tenant realities and focus on affordability, convenience and value are achieving more stable occupancies and more reliable income growth. Those who push rental limits without considering market conditions are facing longer vacancies and increased turnover.
In 2026, the smartest rental strategies are built on sustainability rather than short-term gains.
