Rentals

Renting out backyard rooms

Rent out a room or backyard unit on your property to a tenant, with a written lease and fair house rules.

Some evidenceLast checked 24 Oct 2026

See how this fits you, freeAbout 6 minutes, no sign-up.

Is this for you?

Best for

Property owners with a spare room or space to build, who can manage tenants fairly.

In South Africa: Strong in townships and near transport.

What you need

  • A phone is enough to start
  • Works on everyday data
  • No camera needed
  • No cold selling
  • At least 2 hours a week · age 18+

The money

What it can earn

  1. Pocket money
  2. A top-up
  3. A second income
  4. Can become a full income

Part time, this can become a meaningful second income once you have regular customers.

What people charge

R1 500 to R2 500 per room per month

Listings we found: Soweto backyard rooms about R1,500 a month; furnished secure rooms R2,200 to R2,500. We do not model monthly income.

Costs to plan for

Start-up
R0 to R60 000
Every month
Repairs, electricity and water (recover through a prepaid sub-meter or a fair split), rates.
Payment fees
Monthly EFT.
Margin
High on an existing room; building costs take years to recover.

How it is paid: Monthly rent. Our viability score for it: 70 out of 100 (how we score).

How to start

  1. Test it cheaply Before you spend

    • Check three listings near you for rent and features
    • Write a lease using the Rental Housing Act checklist
    • Success signal: a tenant who pays on time for three months

  2. First week Days 1 to 7

    • List what the room has (security, toilet, kitchen, electricity) and compare nearby rents
    • Write house rules and a lease
    • Install or plan a prepaid electricity sub-meter

  3. First month Days 8 to 30

    • Advertise and check references from previous landlords
    • Put the deposit in a separate interest-bearing account

  4. By three months Days 31 to 90

    • Fix small issues quickly to keep good tenants
    • Decide whether another room would pay off

An existing room can be let in weeks; building takes months. First income usually takes 7 to 180 days. A day-by-day version for your situation is in the full plan.

Step-by-step guide

Renting out a backyard room: from an empty room to your first rent paid

23 short lessons with scripts, templates and rand prices to copy. R149 once-off, and the first lesson is free.

See what is inside

Customers and demand

Who pays

Workers, students and young families near transport.

Affordable housing close to work and transport.

Is there demand?

Listings show Soweto backyard rooms at about R1,500 a month, and furnished secure rooms at R2,200 to R2,500 (Roomsta, Batha Maga Property).

Spare room in the houseBackyard room or flatletContainer room

Getting customers

Word of mouth, community groups and Facebook.

Word of mouth and referralsListing on online marketplaces (Takealot, Bob Shop, Etsy, Teacha!)Responding to enquiries

Risks and rules

Watch out for

  • Non-paying tenants: eviction must follow the law and takes time
  • Building without approved plans can lead to a demolition order
  • Electricity disputes: install a prepaid sub-meter

Competition: Moderate.

Room to grow: Grows with more rooms, at the cost of capital.

Legal and tax in South Africa

  • The Rental Housing Act applies: give a written lease if asked, issue receipts, keep the deposit in an interest-bearing account and refund it correctly.
  • New rooms need approved building plans.
  • Rental income is taxable.
  • Register for income tax with SARS once you earn above the tax threshold, and keep a record of every sale and every cost (stock, materials, transport and fees are business costs).

Questions people ask

How much does it cost to start renting out backyard rooms in South Africa?

Our research puts start-up costs at about R0 to R60 000. Recurring costs: Repairs, electricity and water (recover through a prepaid sub-meter or a fair split), rates.

How long until the first income?

Typically about 30 days, and between 7 and 180 days. An existing room can be let in weeks; building takes months.

Can I do it with only a phone?

Yes, a smartphone is enough to start, although a laptop helps as you grow.

What about tax and legal rules?

The Rental Housing Act applies: give a written lease if asked, issue receipts, keep the deposit in an interest-bearing account and refund it correctly. New rooms need approved building plans. Rental income is taxable. Register for income tax with SARS once you earn above the tax threshold, and keep a record of every sale and every cost (stock, materials, transport and fees are business costs).

Sources (3)

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Researched by the Earn Path team · editorial policy