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Rental deposits in South Africa: how to pay safely and get yours back

Most deposit disputes are about damage that was already there when the tenant moved in. A signed inspection list with dated photos settles them in minutes. Here is how the deposit works from the day you pay it to the day it is refunded.

This article explains the Rental Housing Act in general terms, as it stood when the book was written. It is not legal advice on your own lease.

What the deposit is for

A deposit is security for the landlord. If you leave owing rent, or having caused damage beyond normal wear and tear, the landlord may use the deposit to cover what is lawfully owed. The rest is refunded with interest. It is usually one to two months' rent, and the lease must state the amount.

How to pay it safely

• Pay only after you have been accepted and have a lease to sign.
• Pay by EFT into the agency's trust account or the landlord's bank account, with your name and the address as the reference.
• Get a receipt that states that it is the deposit, with the amount and the date.
• If you must pay cash, get a signed, dated receipt every time.

Your deposit must earn interest

In general terms, the landlord must invest the deposit in an interest-bearing account for the period of the lease, pay you the interest with the deposit at the end, and give you written proof of the interest if you ask. Ask where the deposit will be kept when you sign.

Never use the deposit as your last month's rent unless the landlord agrees in writing.

The incoming inspection decides your refund

Before you move your things in, inspect the home together with the landlord or agent.

1. Go room by room with a written list: walls, floors, doors, locks, windows, plugs, taps, stove, geyser and toilet.
2. Write the exact fault for each item, for example "stove: back left plate not working".
3. Photograph every fault, and take a wide photo of each room.
4. Test the taps, lights, plug points and stove plates.
5. Both sign and date the list, and each keep a copy.

If the landlord will not do a joint inspection, do it yourself in the same way and send the list and photos to the landlord within a day or two.

Moving out

A joint outgoing inspection takes place within three days before the lease ends. Compare the home with your incoming list, photograph everything, and return all the keys against a written acknowledgement.

When the refund is due

In general terms, the deposit plus interest is due:

• within 7 days, if nothing is owed or the landlord did not inspect;
• within 14 days, with receipts, if deductions are made;
• within 21 days, if the tenant did not attend the inspection.

What the landlord may deduct

Lawful deductions are unpaid rent and charges, reasonable repair of damage beyond wear and tear, cleaning, and lost keys. The landlord may not deduct for normal wear and tear, for defects on your incoming list, for routine repainting or for amounts without receipts.

If the deposit is not refunded

Ask in writing first, then send a letter of demand. If that fails, lodge a complaint with the Rental Housing Tribunal, or use the small claims court.

This article is based on Chapters 5 and 10 of Renting Your First Home, which include the inspection checklist and sample letters.