By Liad Hadar – Director and Nadia Shaik – Senior Associate
This article first appeared in Asset Magazine’s August 2026 edition

Few decisions in property management seem as straightforward as selecting a new tenant. A vacancy arises, applications are received, references are checked and if all appears to be in order, a lease is signed.

Yet in today’s legal environment, one of the most important questions a landlord can ask has nothing to do with affordability or rental history.

It is a much simpler question – is this prospective tenant lawfully entitled to occupy property in South Africa?

Recent public debate surrounding undocumented foreign nationals has understandably heightened awareness of this issue. The conversation however should not be about nationality. South Africa’s property market has always benefited from entrepreneurs, professionals, students and families from across the world who live, work and invest here lawfully.

Foreign nationals have every right to rent property in South Africa, provided they comply with our immigration laws. The responsibility placed upon landlords is therefore not to exclude foreign tenants but to exercise reasonable care before concluding a lease.

That distinction is important and this article will serve as a guideline to assist landlords and managing agents to avoid unenviable repercussions from failing to do this.

Good Due Diligence Protects Everyone

At Hadar Incorporated, we believe that the best litigation strategy begins long before a dispute arises.

The same applies to tenant selection.

Proper due diligence is not about suspicion or guessing, it is about certainty.

Every prospective tenant, regardless of nationality, should be subjected to the same objective screening process.

For South African citizens, this generally means verifying credit worthiness and previous rental history.

For foreign nationals, one additional step becomes essential, which is the crux of this advice: confirming that they are lawfully present in the Republic through the appropriate visa, permit or immigration documentation.

This is not discrimination. It is good governance.

A consistent vetting process protects landlords while ensuring that every applicant is treated fairly and equally. All illegal prospects are removed from the potential list and subject to qualifying in terms of the other criteria all legal prospects are maintained and considered.

The Immigration Act Creates Positive Obligations

Many landlords are unaware that the Immigration Act places legal responsibilities on property owners.

The Act prohibits any person from knowingly assisting or harbouring an illegal foreigner, including by providing accommodation or renting any premises to them by entering into a lease agreement.

In terms of the Act, entering into an agreement with an illegal foreigner for the conduct of any business or conducting any business in cooperation with an illegal foreigner shall be guilty of an offence and liable on conviction to a ine or to imprisonment not exceeding 18 months.

Importantly, liability does not arise only where a landlord has actual knowledge. In certain circumstances, the question becomes whether the landlord ought reasonably to have known that the individual involved in the transaction was unlawfully present in South Africa.

That is why a simple request for supporting documentation can make all the difference.

A landlord who has requested and retained copies of passports, permits or visas, together with the usual financial, credit and reference checks, places themselves in a far stronger position than one who asks no questions at all.

This Is About Process, Not Prejudice

Perhaps the most important point is that the law does not require landlords to refuse foreign nationals.

On the contrary, many foreign nationals make outstanding long-term tenants and contribute enormously to South Africa’s economy.

The legal obligation is simply to satisfy yourself that the tenancy is being entered into lawfully.

The same principles apply in countless other areas of commerce:

• Banks verify identity before opening accounts.
• Employers verify work permits before hiring.
• Attorneys conduct FICA verification before accepting mandates.

Landlords should adopt the same mindset as it’s not about excluding people but rather about protecting everyone involved in the transaction.

Documentation Is Your Best Defence

Should a dispute or issue ever arise, documentation becomes invaluable.

Landlords should retain copies of:

• identity documents or passports
• visas or residence permits where applicable
• proof of income
• proof of address
• reference checks; and
• correspondence relating to the application.

These records demonstrate that reasonable steps were taken and that the landlord acted responsibly and in good faith.

Good records rarely create problems, they actually solve them.

A Better Way Forward

South Africa’s rental market thrives when it is built on trust, fairness and compliance.

Responsible landlords should welcome tenants from every background, provided the legal requirements are met.

Likewise, prospective tenants who are lawfully present in South Africa should expect to be treated with dignity and assessed according to objective criteria rather than assumptions or prejudice.

The law already provides the framework and our responsibility is simply to apply it consistently.

Conclusion

Good landlords do not ask, “Where are you from?”. They ask, “Do you have the necessary documentation and have I taken the reasonable steps necessary to protect both of us?”.

That subtle difference changes the entire conversation.

Careful tenant vetting is not about nationality but rather about legality.

Whist it may be attractive to swiftly obtain a new tenant for a vacant space, ultimately, it is about protecting one of the most valuable assets a landlord owns, not just their property, but their peace of mind.