The simple answer is that there is no simple answer to this question. The Rental Housing Act (50 of 1999) in section 5 (6)(c) states the following:
“(t)he amount of rental of the dwelling and the reasonable escalation, if any, to be paid in terms of the lease”
When the landlord sets the rent, he or she can take the following into account, for example:
- Water, electricity, refuse collection,
- Body corporate levies; and
- Bond repayments on the property.
The issue of inflation is thus a moot point as the other factors mentioned must also be taken into account by the Landlord.
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