Your rental deposit is not simply money your landlord can keep in a drawer or personal bank account. South African law sets out clear rules for how it must be protected.
Under Section 5 of the Rental Housing Act, your landlord, or the property practitioner managing the property on their behalf, is legally required to invest your deposit in an interest-bearing account at a recognised financial institution, and the interest rate on that account may not be lower than what a standard savings account would earn. The landlord cannot mix your deposit into their personal or business current account, and they cannot use it as working capital while your lease is active. You are entitled to request, in writing, proof of exactly where your deposit is held and how much interest it has earned, at any point during your tenancy, and your landlord must provide that proof.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, explains that even though the deposit is paid to the landlord, it remains the tenant’s money. “The landlord is merely holding the money as a security measure, should the tenant default or breach the rental agreement. However, the landlord is entitled to deduct from the rental deposit any expenses incurred to repair damages to the property which occurred during the tenancy. This can include things like holes in the walls from picture frames or stains on the carpets,” says Goslett.
READ: Tenants: How to decorate without losing your rental deposit
There is no fixed legal maximum on the deposit amount itself. It is agreed between the tenant and landlord, and in practice is usually equal to one or two months' rent.
According to Morné Prinsloo, Local Real Estate Agent in Roodepoort and Krugersdorp | RE/MAX Town and Country, what the law does regulate closely is how that money must be handled and returned.
To give yourself the best chance of getting your full rental deposit and accrued interest back, here are some of Prinsloo's top recommendations.
"Do a proper joint inspection when you move in, and again when you move out. Document the condition of the property thoroughly, ideally with dated photographs, and make sure both you and your landlord or agent sign off on the same report. Most disputes I see come down to a disagreement about the property's original condition, and a proper move-in inspection eliminates that argument entirely.
"Report any existing damage or defects in writing before you move your belongings in, so there is no ambiguity later about what you caused versus what was already there," says Prinsloo.
"Do a proper joint inspection when you move in, and again when you move out. Document the condition of the property thoroughly, ideally with dated photographs, and make sure both you and your landlord or agent sign off on the same report. Most disputes I see come down to disagreements about the property's original condition, and a proper move-in inspection eliminates that argument entirely," says Prinsloo. He also recommends reporting any existing damage or defects in writing before moving your belongings into the property. "So there is no ambiguity later about what you caused versus what was already there," he says.
Know your refund timeline:
He continues, if your landlord has no lawful deductions to make, you are entitled to your deposit and accrued interest back within seven days of your lease ending.If deductions are needed for legitimate damage, and a joint inspection was properly conducted, the balance is due within fourteen days of the repairs being completed, with receipts to support the costs claimed.
Request written proof of the interest-bearing account at the start of your lease, not just at the end. This puts your landlord on notice from day one that you understand your rights, and in my experience, that alone reduces the chance of a dispute later.
READ: 5 legal tips for property professionals and investors to avoid rental disputes
If your deposit is unfairly withheld despite all of this, you have real recourse. You can approach your provincial Rental Housing Tribunal, which is a free service that can order your landlord to repay your deposit with interest, or, for amounts up to R20,000, use the Small Claims Court without needing legal representation.
To help tenants avoid running into any surprises at the end of their lease, RE/MAX of Southern Africa shares some essential tips to help you get your rental deposit back in full…
Move-in Inspection
Before moving into the property, it is vital to ensure that a detailed move-in inspection is completed. If the landlord is working through a reputable rental agent, this should be taken care of for you. But, if the landlord does not arrange to have an inspection done at key handover, then be sure to arrange one yourself, taking photographs of any existing damages to the property as evidence that they were there before you moved in.
Regular Cleaning
During your tenancy, keep the property clean and in good condition. Be especially mindful of areas prone to damage from dirt build-up, such as kitchens, bathrooms, and carpets. To avoid stains on carpets, add an area rug in parts of the home prone to spillage (in the lounge, for example) or simply avoid eating and drinking in the carpeted spaces.
Repairing Damages
It’s essential to report and fix any damages that occur during your tenancy. Be sure to notify your landlord about any necessary repairs immediately, especially for issues like leaks or appliance malfunctions. If, however, you caused the damage – by hanging a picture on the wall, for example – then you need to make sure this is fixed before you move out.
Normal Wear and Tear
Understanding what qualifies as ‘normal wear and tear’ will help you take extra care where needed. Normal wear and tear are the typical deterioration that happens to a property over time, and landlords are not allowed to charge for this. However, excessive damage beyond normal wear, such as large stains, broken tiles, or holes in the walls, will likely lead to deductions.
Understanding the reimbursing process
The landlord is required by the Rental Housing Act to place the money in an interest-bearing account, held with a financial institution. If there is no damage to the property, the full deposit and interest must be paid to the tenant within seven days of the lease's expiration date. Should any disputes arise between the landlord and the tenant regarding the rental deposit, Goslett recommends that they can turn to the province’s Rental Housing Tribunal for assistance.
“Getting your full rental deposit back doesn't have to be a struggle. By being proactive, maintaining the property, and staying organized, you can avoid most issues that lead to deductions. Always remember that clear communication with your landlord or rental agent, combined with proper documentation, can protect your deposit and ensure a smooth transition at the end of your lease".
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