One of the most common concerns people have when considering debt review is whether it will affect their ability to rent a property. If your lease is ending, you are relocating for work, or your family needs a bigger home, the thought of being turned away by landlords because of your debt review status can feel daunting. The good news is clear: renting a property is not a credit agreement, and debt review does not legally prevent you from signing a lease.
The short answer: Yes, you can rent a property while under debt review. A residential lease agreement is not a credit agreement under the National Credit Act (NCA). Section 88 of the NCA only prohibits you from entering into new credit agreements during debt review. Because renting involves paying for the use of a property — not borrowing money or receiving goods on credit — it falls outside the scope of the NCA entirely.
Section 88 of the NCA: What Is Actually Prohibited?
To understand why renting is permitted during debt review, it helps to know exactly what Section 88(1) of the National Credit Act says. This section states that a consumer who has been placed under debt review may not enter into any new credit agreement with any credit provider until a clearance certificate has been issued by the debt counsellor.
The key phrase here is "credit agreement." The NCA defines a credit agreement as an arrangement where money is lent, goods are sold on deferred payment terms, or a credit facility (such as a credit card or overdraft) is provided. Examples of credit agreements include personal loans, vehicle finance, home loans, store accounts, credit cards, and cellphone contracts that include a device on deferred payment.
A rental or lease agreement does not fall into any of these categories. When you rent a property, you are paying a monthly amount in exchange for the right to occupy and use the premises. No money is being lent to you. No goods are being sold to you on credit. No credit facility is being extended. It is a straightforward contract for the use of property, governed by entirely different legislation.
Rental Housing Act vs National Credit Act
Residential rental agreements in South Africa are governed by the Rental Housing Act 50 of 1999, not the National Credit Act 34 of 2005. These are two completely separate pieces of legislation with different purposes, different regulators, and different protections.
| Aspect | Rental Housing Act | National Credit Act |
|---|---|---|
| Governs | Residential lease agreements between landlords and tenants | Credit agreements between credit providers and consumers |
| Regulator | Rental Housing Tribunals (provincial) | National Credit Regulator (NCR) |
| Nature of agreement | Service — you pay rent for the right to occupy property | Credit — you borrow money or receive goods on deferred payment |
| Section 88 applies? | No — not a credit agreement | Yes — new credit agreements are prohibited during debt review |
| Credit check required? | Not legally required, but many landlords choose to run one | Mandatory — credit providers must conduct affordability assessments |
Because these two Acts operate independently, the restrictions placed on you by the NCA during debt review have no bearing on your ability to enter into a lease agreement under the Rental Housing Act. A landlord is not a credit provider, and a lease is not a credit agreement. The two simply do not intersect.
Landlord Credit Checks: What to Expect
While landlords are not legally required to run credit checks on prospective tenants, many do — particularly estate agents and property management companies who handle lettings on behalf of landlords. If a credit check is conducted through a credit bureau such as TransUnion, Experian, or XDS, your debt review status will be visible on your credit report.
This can understandably cause anxiety, but it is important to understand the distinction: a landlord running a credit check is not the same as a credit provider assessing your creditworthiness for a loan. The landlord is simply trying to gauge whether you are likely to pay rent consistently. They are not bound by Section 88 of the NCA and are not prohibited from entering into a lease with you, regardless of your debt review status.
In practice, some landlords and agents may view a debt review flag negatively because they associate it with financial difficulty. Others may view it positively because it shows you are taking responsible steps to manage your debt rather than ignoring it. Your approach in presenting your situation can make a significant difference.
Important to note: A landlord or estate agent running a credit check on you requires your written consent under the Protection of Personal Information Act (POPIA). They cannot check your credit profile without your permission. You have the right to know what information has been accessed and how it is being used.
How to Approach Landlords About Your Debt Review Status
Transparency is almost always the best approach when dealing with a prospective landlord. If you know a credit check will reveal your debt review status, it is better to address it proactively rather than have the landlord discover it and form their own conclusions. Here is how to frame the conversation:
- Explain what debt review is: Many landlords do not fully understand debt review. Explain that it is a legal, court-supervised process regulated by the National Credit Regulator in which your debts are restructured to make them affordable. Emphasise that it is a responsible step — not a sign of irresponsibility.
- Highlight the budgeting benefit: Under debt review, your debt counsellor has already assessed your income and expenses and ensured that you can afford your monthly obligations, including rent. This means your rental payment is budgeted for and protected — you are arguably less likely to default on rent than someone whose finances are unmanaged.
- Provide proof of income: A recent payslip, bank statement, or employment letter confirming your salary shows the landlord you have a stable income stream. If your debt counsellor has a formal budget showing rent as a priority expense, offer to share this as well.
- Offer references: A letter or phone reference from your current or previous landlord confirming that you paid rent on time and maintained the property well can carry significant weight. A reference from your employer adds further credibility.
Practical Tips for Securing Rental Accommodation
Beyond being transparent with landlords, there are several practical steps you can take to strengthen your rental application while under debt review:
1. Offer a Larger Deposit
The standard rental deposit in South Africa is one to two months' rent. Offering a larger deposit — for example, two to three months' rent — provides the landlord with additional financial security and demonstrates your commitment to the lease. This can often tip the scales in your favour when a landlord is on the fence. Speak to your debt counsellor beforehand to ensure the larger deposit is factored into your budget.
2. Provide Proof of Stable Income
Landlords care most about whether you can pay the rent every month. Provide your latest three months' payslips, a letter of employment, and three months' bank statements showing consistent salary deposits. If you are self-employed, provide financial statements, tax returns, or invoices that demonstrate regular income. The goal is to show that your income is steady and sufficient.
3. Get a Reference From Your Current Landlord
A written reference from your current or most recent landlord is one of the most powerful tools in your rental application. Ask them to confirm the dates of your tenancy, that you paid rent on time, and that you maintained the property in good condition. Prospective landlords place significant value on the word of a fellow landlord.
4. Request a Letter From Your Debt Counsellor
Your debt counsellor can provide a letter confirming that you are under debt review, that your finances are being managed, and that your budget includes provision for rental payments. This letter acts as third-party verification that your rent will be paid. Some landlords find this reassuring because it shows professional financial oversight.
5. Consider Private Landlords Over Estate Agents
Estate agents and property management companies tend to have strict credit check policies and may automatically decline applicants with a debt review flag. Private landlords who manage their own properties are often more flexible and willing to assess your application on its merits rather than relying solely on a credit score. Look for rental listings on community notice boards, social media groups, and word-of-mouth referrals in your area.
6. Offer to Set Up a Debit Order
Setting up a debit order for your monthly rent payment gives the landlord confidence that the payment will be made automatically on a fixed date each month. It removes the risk of you forgetting to pay and signals that you are serious about meeting your obligations.
What About Your Existing Lease?
If you are already renting a property when you enter debt review, your existing lease agreement is completely unaffected. Debt review applies only to credit agreements — your lease is not one of them. Your landlord cannot terminate your lease, change the terms, or increase your rent outside the normal provisions of your lease agreement simply because you have entered debt review.
Your debt counsellor will include your monthly rent as an essential living expense when calculating your debt review budget. This means your rent is accounted for before your restructured debt payments are determined. In other words, your rent is treated as a priority expense and is protected within your debt review plan.
You are not obligated to inform your landlord that you have entered debt review, although there is no harm in doing so if you have a good relationship with them. Since debt review has no legal impact on your lease, it is entirely your decision whether to disclose this information to your current landlord.
Can a Landlord Evict You for Being Under Debt Review?
No. Being under debt review is not grounds for eviction. South African tenants are protected by the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (commonly known as the PIE Act), which sets strict requirements for lawful eviction.
Under the PIE Act, a landlord can only apply to court for an eviction order on valid grounds. These grounds include non-payment of rent, material breach of the lease terms (such as subletting without permission or causing damage to the property), or expiry of the lease term where the tenant refuses to vacate. Debt review status is not listed as a ground for eviction, nor could it be — it has nothing to do with the tenant's performance under the lease.
Even if a landlord were to attempt to use your debt review status as a reason to terminate your lease, such an attempt would not hold up in court. The Rental Housing Tribunal in your province can assist you if you experience any form of unfair treatment or attempted eviction related to your debt review status.
Warning: While debt review does not affect your lease, failing to pay your rent does. Your debt counsellor ensures that rent is budgeted for, but it is your responsibility to pay it on time every month. Non-payment of rent is a valid ground for eviction, regardless of whether you are under debt review or not.
Body Corporate, Sectional Title, and Levies
If you are renting in a sectional title complex or an estate with a homeowners' association, you may wonder whether body corporate levies or homeowners' association fees are affected by debt review. The answer is no. These levies are not credit agreements — they are charges for services and shared expenses related to the maintenance and management of the common property.
In most rental arrangements within sectional title schemes, the landlord (who is the owner) pays the levies, and the cost may be partially or fully incorporated into the rent. If your lease requires you to pay levies directly, these are treated as a living expense in your debt review budget, not as a debt.
The same applies to any special levies raised by the body corporate for major repairs or improvements. These are contributions towards shared property costs and fall entirely outside the NCA.
Utilities and Municipal Accounts
Municipal services such as electricity, water, sewerage, and refuse removal are essential services, not credit agreements. Whether these accounts are in your name or the landlord's name, they are not affected by debt review and are not subject to Section 88 of the NCA.
Your debt counsellor will include utility costs as essential living expenses in your monthly budget. This ensures that you have sufficient funds allocated for electricity, water, and other municipal charges after your restructured debt payments have been deducted. If you are on prepaid electricity or water, these costs are managed directly by you and do not involve any credit arrangement.
It is worth noting that if you have an existing outstanding municipal account that is in arrears, this is treated as a debt owed to the municipality. Municipal debt is not a credit agreement under the NCA and is generally not included in debt review. You would need to make separate arrangements with the municipality to settle any arrears.
What If You Need to Relocate During Debt Review?
Life does not stop because you are under debt review. You may need to move for a new job, to be closer to family, or because your current property no longer meets your needs. Relocating during debt review is perfectly fine — you simply need to follow the normal process of giving notice on your current lease and finding a new property to rent.
If your new rental amount is different from your current rent, inform your debt counsellor so they can adjust your monthly budget accordingly. If the new rent is higher, your debt counsellor will need to reassess your affordability to ensure your restructured debt payments remain manageable. If the new rent is lower, the savings may be redirected toward your debt repayments, potentially helping you exit debt review sooner.
Always give proper notice as required by your lease — typically one calendar month for a month-to-month lease or as stipulated in a fixed-term lease. Failing to give proper notice can result in you forfeiting your deposit or being held liable for additional rent, which would put unnecessary strain on your debt review budget.
Key Differences: Renting vs Buying During Debt Review
| Factor | Renting a Property | Buying a Property (Home Loan) |
|---|---|---|
| Type of agreement | Lease agreement (service) | Home loan (credit agreement) |
| Governed by | Rental Housing Act | National Credit Act |
| Allowed during debt review? | Yes | No — prohibited by Section 88 |
| Credit check required? | Optional (landlord's choice) | Mandatory (bank requirement) |
| Impact of debt review flag | Landlord may consider it but is not bound by NCA | Bank will automatically decline the application |
Your Rights as a Tenant Under Debt Review
It is important to know your rights so that you can stand firm if a landlord or estate agent attempts to deny you accommodation unfairly. Here is a summary of the key rights relevant to tenants under debt review:
- Right to rent: Debt review does not legally prohibit you from entering into a lease agreement. Any suggestion that it does is incorrect.
- Right to fair treatment: The Rental Housing Act requires landlords to treat all tenants fairly and without discrimination. While the Act does not specifically list debt review as a protected category, the principle of fair dealing applies.
- Right to privacy: Under POPIA, a landlord cannot access your credit information without your written consent. You can refuse a credit check, although this may result in the landlord declining your application.
- Right to protection from eviction: The PIE Act protects you from illegal or unfair eviction. Debt review status is not a valid ground for eviction.
- Right to a deposit refund: When your lease ends, your landlord must refund your deposit (with interest, where applicable) within seven or fourteen days, depending on whether an inspection was conducted. Debt review does not change this obligation.
Bottom line: Debt review is designed to help you manage your debts responsibly. It does not take away your right to have a roof over your head. You can sign a lease, renew a lease, and move to a new rental property while under debt review without any legal barrier.
For a complete overview of the debt review process, read our detailed guide on what is debt review. If you want to know what life looks like after completing debt review, see our article on life after debt review. And if you are a homeowner worried about your property, read can I lose my house in debt review.
Frequently Asked Questions
Can a landlord refuse to rent to me because I am under debt review?
A landlord is not legally obligated to rent to you, and they may use your credit profile as one factor in their decision. However, debt review is not a legally valid ground for automatic disqualification. Many landlords are willing to rent to consumers under debt review if you can demonstrate stable income and offer additional security such as a larger deposit or a credible reference from a previous landlord.
Does my lease agreement fall under the National Credit Act?
No. A residential lease agreement is governed by the Rental Housing Act 50 of 1999, not the National Credit Act 34 of 2005. A lease is a contract for the use of property in exchange for monthly rent — no credit is extended to the tenant. Section 88 of the NCA, which prohibits new credit agreements during debt review, does not apply to rental agreements.
Can my landlord evict me if I enter debt review during my lease?
No. Entering debt review is not a breach of your lease agreement and is not grounds for eviction. The Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIE Act) protects tenants from arbitrary eviction. A landlord can only evict a tenant for valid reasons such as non-payment of rent, material breach of the lease, or expiry of the lease term — not for being under debt review.
Will a landlord see that I am under debt review if they run a credit check?
Yes. If a landlord or estate agent runs a credit check through a credit bureau (TransUnion, Experian, or XDS), your debt review status will be visible on your credit report. However, landlords are not credit providers and are not bound by Section 88 of the NCA. They may still choose to rent to you based on other factors such as your income, employment stability, and rental history.
Are body corporate levies and municipal utility accounts affected by debt review?
No. Body corporate levies and municipal utility accounts (electricity, water, refuse removal) are not credit agreements under the NCA. They are service charges and are not included in your debt review repayment plan. Your debt counsellor will factor these as essential living expenses in your monthly budget to ensure you can continue paying them alongside your restructured debt payments.
