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Rental deposits: the rules for tenants and landlords
A landlord may ask for a deposit, and the Rental Housing Act sets no limit on the amount: it is whatever you and the landlord agree. The landlord must keep it in an interest-bearing account, and the interest belongs to the tenant. When the lease ends, the law sets deadlines for getting the money back. Knowing these rules helps both tenants and landlords avoid arguments.
How much and where it is kept
The deposit is security for the landlord against damage or unpaid rent. The amount is a matter of agreement, so the lease should state it clearly. Many landlords ask for one or two months’ rent, but the law does not say so.
The landlord must invest the deposit in an interest-bearing account at a rate no lower than a normal savings account. The tenant gets the interest. During the lease you may ask for written proof of the interest earned, and the landlord must provide it.
If an estate agent holds the deposit, it goes into the agent’s trust account under the Property Practitioners Act. A directive from the Property Practitioners Regulatory Authority (the PPRA) splits the trust interest equally between the agent and the PPRA, unless the lease says in writing who gets the interest. So if an agent is involved, check that your lease deals with the interest.
The joint inspections protect the deposit
The Act requires the landlord and tenant to inspect the home together before you move in. They must do so again at the end of the lease, at a time that suits both, within the three days before the lease expires. At each inspection you record the condition of the home, and the move-in list is the benchmark for what the landlord can claim later.
If the landlord does not inspect with you present, at the start or at the end, the law treats the landlord as accepting that the home is in a good state of repair. The landlord then has no further claim and must refund the full deposit with interest. Always attend both inspections, and take your own photographs. Read inspections when you move in and out of a rental for more.
Getting the deposit back: the deadlines
Which deadline applies depends on what the landlord claims.
- Nothing owed. The landlord must refund the deposit plus interest within 7 days of the lease ending, with no deductions.
- Landlord deducts for damage or arrears. The landlord must refund the balance within 14 days of the home being handed back. The 14 days run from the handover of the dwelling, not from when repairs are finished. The landlord must make the receipts available to you.
- Tenant does not respond to the inspection request. The landlord must inspect within 7 days of the lease ending, and any balance is due within 21 days of the lease ending.
Deductions must be for real costs. Fair wear and tear, such as faded paint after years of living, is not damage that you should pay for. Missing items, broken fittings and unpaid rent are. If the landlord deducts, ask for the quotes or receipts.
If the landlord will not pay
Start with a written request that quotes the dates. If that fails, you can lay a complaint with your provincial Rental Housing Tribunal. It costs neither side anything for mediation or a hearing, and its ruling counts as an order of the magistrate’s court. A landlord who ignores the deadlines may be ordered to pay. For other options, such as the small claims court, get advice.
While a complaint is pending, you must keep paying rent, and the landlord may not evict you. The Tribunal cannot grant an eviction order itself.
If you are a landlord, remember that you cannot keep the deposit as a way of forcing a tenant to do something, and you cannot just hold on to it after the deadline. Keep the move-in list, photographs and receipts so that your deductions are fair and provable.
Tips for tenants and landlords
- Put the deposit amount, account and interest arrangements in the lease.
- Pay by bank transfer and keep proof.
- Do not treat the deposit as the last month’s rent unless the lease says so.
- Give your forwarding address and bank details in writing when you leave.
What to do next
- Read renting a home: what to check before you sign.
- Understand the wider picture in tenants’ rights and responsibilities.
- Landlords can estimate their returns with the rental yield calculator.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.