If you own one or more rental properties, the SA Revenue Service (SARS) requires that you draw up financial statements showing your expenses and profits in relation to these properties - and pay tax on your profits.
Many private landlords believe they can pocket whatever rent they receive, but Rentals.com, the rental property management division of Harcourts Africa, advises that this is a contravention of the Income Tax Act.
"If a rental property is in your name," says chief executive Martin Schultheiss, "the rent received forms part of your income and must be declared to SARS."
However, there are expenses incurred in the letting of property that can be deducted from the actual profit - and reduce the tax payable.
These typically include interest paid on bonds, municipal rates, the cost of any repairs and of maintaining the property, the premiums paid to insure the property and sectional title or estate levies paid.
Schultheiss also says that if you haven't declared your rental income in past tax periods, it is advisable to approach SARS and "come clean". Taking a direct approach may result in a reduction of the penalties and interest SARS can impose on unpaid taxes.
"We recommend you get an accountant or a reputable tax consultant to help you clear things up ... and ensure that your net rental income is properly calculated and disclosed in future tax returns."
Weekend Property supplement (Saturday Argus)