Compliance · 2026-09-04 · 7 min read
Rental deposits in South Africa: the rules landlords get wrong
What the Rental Housing Act requires for a residential deposit — the interest-bearing account, the joint inspections, the itemised deductions and the refund deadlines — explained for self-managing landlords.
The deposit is the part of a tenancy most likely to end in a Rental Housing Tribunal complaint. Not because landlords are dishonest, but because the Rental Housing Act (RHA) has specific mechanics that are easy to skip when you manage a few units yourself.
The deposit is the tenant's money, held by you
Section 5(3) of the RHA sets out the deposit provisions for residential leases. In plain terms:
- It must be invested in an interest-bearing account with a financial institution, and the interest belongs to the tenant. The rate must be at least what the bank pays on a savings account. A tenant may ask for proof of the interest earned.
- You must inspect the property together before the tenant moves in and record any defects. Without a joint incoming inspection, you are generally taken to acknowledge the property was in good condition — which makes deducting for damage later very hard.
- You must inspect together again before they leave, within the period set by the Act, and the tenant is entitled to be present.
- Deductions must be itemised and supported. You may deduct the reasonable cost of repairing damage beyond fair wear and tear, and unpaid amounts owed under the lease. Keep the receipts; the tenant may inspect them.
- The refund has deadlines. Where nothing is owed, the deposit plus interest is due within 7 days of expiry of the lease. Where there are deductions, the balance is due within 14 days of restoration of the property. Where the outgoing inspection did not happen because the tenant did not make themselves available, the deadline is 21 days.
Fair wear and tear is not damage
Scuffed paint after two years, a worn carpet path, a tap washer — these are the cost of letting a home and cannot come out of the deposit. A hole in a door, a broken window, a burnt hob — these can. Photographs at the incoming inspection are what make the difference defensible.
Where PropKeep helps
- Inspections records the incoming, routine and outgoing inspections with condition, notes, photo evidence and a "deposit impact" field, and produces an Inspection Report PDF signed off by both sides.
- Tenants stores the deposit amount against the lease so the refund calculation starts from the right number.
- Remi will flag a lease with a deposit but no recorded inspection evidence in your compliance brief.
Nothing here is legal advice; when a deposit dispute is heading for the Tribunal, get advice from a rental housing attorney.