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Everything you need to know about rental deposits

Everything you need to know about rental deposits

Author: Pranil Maharaj
Date: 2019-01-18

The rules for handling rental deposits are very clearly outlined in the Rental Housing Act, and yet certain misconceptions still occur amongst landlords and tenants.

1. Who is responsible for managing the deposit A tenant's deposit is typically held by the individual or company managing the rental property. This could be a managing agent, or it could be the landlord. It's normally easy to tell who is responsible, since they will be the ones collecting your rent.

2. Why are there separate deposits for damages and services Many tenants will be faced with two deposits when signing a lease: one for damages and one for services. To prevent holding back on the entire deposit, which is normally two whole month's rental, it is best to keep a small services deposit aside to the value of a few hundred rands.

3. How quickly must the damages deposit be returned In a perfect world, the refunding of deposits would be instant, but reality involves a little more admin when it comes to conclude the returns.

  • If there are no damages: If there are no damages found during the outgoing inspection, the deposit must be refunded, in full, within seven days.
  • If there are damages: If damages are found during the outgoing inspection, the landlord, or their representative, has 14 days to fix and return the remainder of the deposit to the tenant.
  • If no outgoing inspection takes place: If the landlord or their representative does not conduct an outgoing inspection, they forfeit the right to deduct any damages from the tenant's deposit, and must refund the tenant within seven days.

4. Can the deposit be used during the lease As a rule, deposits should not be touched until the lease is concluded. Deposits are occasionally used to cover the last month's rental, but it is best to avoid this, as the remainder may not be enough to cover any unexpected damages.