There is no general statutory cap on residential rent in South Africa. On renewal the parties are agreeing new terms, so the rent, the escalation rate and the duration are all open for negotiation.
What is regulated is the disclosure. Section 14(2)(d) of the Consumer Protection Act requires the expiry notice to set out any material changes that would apply if the agreement were renewed. An increased rent is a material change, so it belongs in that notice rather than in a later document the tenant sees for the first time when asked to sign.
Separately, the Rental Housing Act's unfair practice provisions apply to the conduct around an increase — a landlord may not use an increase as a device to force a tenant out in circumstances the Act treats as an unfair practice, and disputes about rentals can be referred to the provincial Rental Housing Tribunal.
If the existing lease already contains an agreed escalation clause for a renewal period, that clause governs, and the notice should reflect the escalated figure it produces.
Sources
- Consumer Protection Act 68 of 2008, s14(2)(d)
- Rental Housing Act 50 of 1999, unfair practice provisions
Disclaimer: This is general information about South African lease-renewal procedure, not legal advice. Dates are calculated from the information you provide and from published public holidays. Check them against your lease and take your own legal advice before acting.