6 Key Considerations When Investing in a Buy-to-Let Property

South Africa’s buy-to-let property sector offers attractive opportunities for investors in 2025. According to The African Investor, the market currently boasts rental yields between 9.4% and 15.2%, with average property prices ranging from R800 000 to R1.8 million, depending on the region. For investors looking to maximise returns while ensuring long-term tenant demand, choosing the right property type and location is crucial.

“Investors entering the buy-to-let market need to carefully consider who the rental market is geared towards, the potential rental that can be secured, as well as the region’s future growth prospects,” says Barto van der Merwe, MD of Renishaw Property Developments. “There is massive potential for those who make the right investment, particularly in emerging markets.”

Van der Merwe shared his 6 key considerations for property investors in South Africa.

1.   Consider Coastal Areas

The most important rule of property investment is location. Coastal regions with good infrastructure, proximity to towns, and access to modern amenities such as shops, healthcare, and schools tend to hold value and attract consistent tenant demand. South Africa’s KwaZulu-Natal coastline, boasting natural assets and a subtropical climate, continues to rise in demand, with the KZN Mid-South Coast presenting more affordable investment options.

2.   Secure Lifestyle Estates

Investment properties within secure lifestyle estates consistently achieve higher rental yields. Levies typically cover external maintenance, building insurance, gardens, and security services – all factors that contribute to tenant satisfaction. Importantly, a well-managed estate ensures harmonious living through conduct rules and consistent aesthetic standards.

3.   Prioritise Off-Grid Living

With increasing concerns about power outages and water shortages, properties that offer alternative water supply, backup power systems such as inverters and batteries to shield against load shedding, and sustainable sanitation solutions are more attractive to tenants. These features are rapidly becoming non-negotiable in the rental market, especially in the mid- to upper-end sector.

4.   Bonus of Communal Facilities

Modern tenants are drawn to lifestyle estates that offer more than just a property. Communal facilities such as clubhouses, sports facilities, and recreational areas enhance the sense of community and improve tenant retention. These shared amenities make rental units far more competitive in the market.

5.   Access to Natural Outdoor Spaces

Spending time outdoors, particularly on the KwaZulu-Natal coast, is a priority for many residents. This is why more tenants are seeking homes that integrate nature and outdoor living. Properties with access to nature trails, coastal forests, or landscaped gardens deliver an enhanced lifestyle, increasing rental appeal and long-term value.

6.   Apartments Offer Investment Value

For investors looking to enter the buy-to-let market, apartments are a great starting point. Anything from one to two bedrooms promises great entry-level appeal, with a garage or parking bay a must. Affordability also remains a driving factor in South Africa’s buy-to-let market, with properties priced below R2-million aligning with a stronger rental yield bracket.

Buy-to-Let Options at Renishaw Hills

“At Renishaw Hills, we’ve combined all of these elements to create an investment opportunity that goes beyond bricks and mortar,” continues Van der Merwe. “Our 2-bedroom apartment offerings priced from just R1 595 000 guarantee strong rental appeal, long-term value, and peace of mind for retirees.”

Located in Scottburgh on the KZN Mid-South Coast, Renishaw Hills is part of the 1 300-hectare Renishaw Coastal Precinct and offers unfurnished and fully furnished apartments designed with the buy-to-let market in mind. Key features include:

• Under R2-million investment options, including two-bedroom, two-bathroom units with garages or parking bays.
• Affordable levies covering exterior maintenance, garden services, refuse collection, fibre-optic WiFi, postal services, 24/7 security, and healthcare options.
• Off-grid benefits, including an independent water supply ensuring uninterrupted access.
• A wealth of communal amenities, from 20+ active clubs to a new bowls green, fostering a vibrant community spirit.
• Natural surroundings with Blue Flag beaches, coastal forests, hiking, and biking trails, all within the estate.

Get in touch!

Far from being just an active retirement community, Renishaw Hills in Scottburgh on the KZN South Coast is a premier mature lifestyle estate for individuals over 50, offering a vibrant, active lifestyle. For more details about Renishaw Hills or to arrange a tour, contact Kelly at 064 198 2693, email This email address is being protected from spambots. You need JavaScript enabled to view it., or visit www.renishawhills.co.za.