There are six factors that first-time landlords need to thoroughly research and understand before they go ahead:

1. Plan for future rather than immediate returns.
2. Set a realistic budget based on an achievable rental price.
3. Set up an emergency fund for repairs.
4. Understand the risks of late payments.
5. Set up thorough lease agreements.
6. Create checklists for rental inspections.

For a percentage of the rental income, a rental management agent will have the expertise and resources to ensure that the property is managed correctly. They will assist the landlord with tenant selection, reference and credit checks along with the day-to-day management of the property. If a property rental is handled correctly from the start, with ongoing professional management, many unnecessary and unpleasant situations can be avoided.

Landlords cannot simply evict their tenant for late payments, as they're protected by the Prevention of Illegal Eviction from Unlawful Occupation of Land Act, No. 19 of 1998 (PIE Act). If the agreed-upon payment date has come and gone, you should immediately contact your tenant to inform them of the overdue payment. Thereafter, there are several legal steps you need to action before you can evict a tenant.

As a landlord, you're required to declare the total amount of rental income received as part of your taxable income. Certain deductions can be made, such as those of a non-capital expense. If you deduct these expenses from your tax return, it'll reduce your taxable income and possibly put you in a lower tax bracket, which will be to your benefit. Reminder: tax evasion is illegal. If you're unsure, consult with a professional financial adviser or tax consultant.