In South Africa, the Rental Housing Act 50 of 1999 lets a landlord ask for a deposit before you move in. The landlord must keep it in an interest-bearing account, inspect the property with you when you arrive and when you leave, and pay it back with interest within 7, 14 or 21 days of the lease ending, depending on whether anything is owed.
Does a landlord have to ask for a deposit?
No. Section 5(3) of the Act says a landlord may require a deposit before the tenant moves in. Whether there is a deposit, and how big it is, comes down to what the lease says. That is why deposit alternatives are possible at all. If the landlord and tenant agree on another form of security, nothing in the Act stops them.
How much can a landlord charge?
The Act does not set a maximum. It says the deposit is the amount specified in the lease or otherwise agreed. Many landlords ask for one or two months' rent, and some ask for more when a tenant has a thin credit record. If the figure looks high, you can negotiate it before you sign. Once it is in the lease, it is binding.
Where the deposit must be kept
The landlord has to invest the deposit in an interest-bearing account with a financial institution. The rate cannot be lower than a savings account rate at that institution, and the interest is yours. During the lease you can ask for written proof of the interest earned, and the landlord must give it to you.
If the landlord is a registered estate agent, the Act hands the deposit and interest over to estate agency law. That law is now the Property Practitioners Act 22 of 2019, and agents keep tenant deposits in a trust account.
The two inspections that decide most disputes
The Act asks for two joint inspections, meaning landlord and tenant together:
- Before you move in. You inspect the property together and record any defects or damage that are already there.
- Before the lease ends. You inspect it together again, at a time that suits you both, within the three days before the lease expires.
These two reports carry a lot of weight. If the landlord does not inspect with you, the Act treats that as the landlord accepting the property is in good repair. The landlord then has no further claim against you and must refund the full deposit plus interest. If you ignore the landlord's request to inspect, the landlord can inspect alone within seven days of the lease ending.
Our room-by-room inspection checklist covers what to check and how to record it.
When the deposit must be paid back
| Situation | Deadline | What you get back |
|---|---|---|
| Nothing is owed to the landlord | 7 days after the lease ends | The full deposit plus interest, with no deductions |
| The landlord deducts amounts you owe, after a joint inspection | 14 days after you hand the property back | The balance plus interest |
| You did not respond to the landlord's request to inspect | 21 days after the lease ends | The balance plus interest, after reasonable repair costs and lost keys |
Whenever the landlord deducts something, the receipts for those costs must be available for you to inspect.
What a landlord can deduct
The landlord can use the deposit and interest to pay anything you owe under the lease. The Act names two items specifically: the reasonable cost of repairing damage caused during the lease, and the cost of replacing lost keys. Unpaid rent and unpaid charges that the lease makes you responsible for can also come off.
Fair wear and tear cannot. Faded paint after three years is wear and tear. A hole in the wall is damage. We go through the grey areas in wear and tear or damage: what a landlord can deduct.
If your deposit is not paid back
- Ask in writing. Email the landlord or agent, give the date the lease ended, quote the deadline that applies and ask for the receipts behind any deductions.
- Go to the Rental Housing Tribunal. Every province has one. Lodging a complaint is free, and the tribunal can mediate or make a ruling.
- Consider the Small Claims Court. For amounts up to R20,000 you can bring a claim without a lawyer.
Where a deposit alternative fits
Because the Act allows a deposit rather than requiring one, a landlord can accept other security instead. With De-Posit, the tenant pays a monthly fee and gives De-Posit a debit-order authorisation up to the deposit amount. The landlord claims for damage or unpaid rent with the same kind of evidence a deposit deduction needs, and the tenant stays liable for what they owe. The inspection rules above still matter, because they are what a fair claim is built on.
Weighing up whether that is worth it for you? See cash deposit or monthly fee: which costs you less.
Sources
- Rental Housing Act 50 of 1999, section 5(3), published on gov.za
This article is general information about renting in South Africa, not legal advice. For a specific dispute, contact your provincial Rental Housing Tribunal or an attorney.