Resource information
Small Scale Landlords make a significant contribution to the South African economy. They provide a range of accommodation types for approximately 15% of all South African households (1,85 million households). 60% of this stock (1,1 million households) comprises Household Rental including both formal and informal units located in backyards. This research shows that these small scale Landlords are making a significant contribution to the South African economy firstly through the provision of a range of accommodation types that is generally well located and affordable to very poor households and secondly through contributing to income generation and wealth creation, at a level that is estimated to be R421 million per month.
In addition, the research found that there is potential for growth within the Small Scale Landlord sector. However this potential is currently not being realised. Given the challenges faced by South Africa with a significant housing shortage, high levels of poverty and unemployment and a strong focus on enterprise development, it is evident that there is a need for and value in supporting the growth of the Small Scale Landlord sector.In this regard a range of recommendations are made focusing on policy implications, financial products, information products and tools and state owned stock. The authors propose that the recommendations, to be developed by the National Department of Housing, should be implemented by Private and Public Sector stakeholders who must work together within the terms of a National Policy Framework. Furthermore, the role of Government should be that of leader and enabler, creating the legislative and regulatory framework that supports Small Scale Landlords and use incentives to encourage them to improve the quality of their stock and build additional stock. Financial Institutions are also required to provide loans linked to business support thereby increasing Small Scale Landlords access to capital while business support service providers should encourage and support Small Scale Landlords. Overall these interventions should encourage and support Small Scale Landlords to formalise and operate more effectively and support the expansion of the Small Scale Landlord Sector.
