Budget alert: Rising rentals bring hidden expenses for tenants
Think rent is all you pay? Hidden costs can strain tenants’ budgets, warns real estate company.
Adrian Goslett, CEO and regional director of RE/MAX Southern Africa, warns that as rental prices continue to climb across many parts of the country, tenants are increasingly focused on securing a property that fits within their monthly budget.
“Renters often focus primarily on the monthly rental amount when evaluating affordability, but the true cost of renting goes far beyond that figure. To avoid financial strain, tenants need to take a comprehensive view of all related expenses and ensure their housing costs align with their income and lifestyle,” he said.
He added that one commonly overlooked cost is the rental deposit, usually equal to one or two months’ rent, which can put pressure on cash flow at the start of a lease. Tenants may also need to pay the first month’s rent in advance, as well as administrative or lease preparation fees.
“Utilities are another key expense. While some rentals include certain services, most require tenants to pay separately for electricity, water, and refuse removal. Municipal levies or additional landlord charges can further impact budgets. Day-to-day maintenance costs – such as replacing light bulbs, maintaining gardens, or addressing minor plumbing issues – can also add up over time. Tenants moving into secure estates or apartment complexes may face extra costs for parking bays, access tags, or lost card penalties,” Adrian continued.
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He added that insurance is also often overlooked.
“While landlords insure the building, tenants need contents insurance to protect personal belongings against theft, fire, or water damage. Finally, tenants must consider inflation and annual rental escalations, usually between 5% and 10%. Those stretching their budget to secure a property may feel pressure when rents increase at renewal,” he said.
According to Adrian, careful planning and transparent communication with landlords or rental agents can help tenants avoid surprises.
“Requesting a full breakdown of expected monthly and once-off costs, and creating a detailed housing budget that includes rent, utilities, insurance, transport, and an emergency fund, provides greater financial security. When it comes to renting, true affordability requires looking beyond the headline rental figure. Understanding and preparing for hidden costs helps tenants make informed decisions and protect their financial well-being in the long term,” he concluded.
