Quick Facts

• Your landlord must put your deposit in an interest-bearing account
• You have the right to proof of interest earned at any time
• Interest belongs to you, not the landlord
• Deposit plus interest must be refunded within 7-21 days after moving out
• You can complain to the Rental Housing Tribunal for free

What is a Rental Deposit?

A rental deposit is money you pay your landlord before moving into a rental property. This money acts as security for the landlord.

The deposit protects the landlord if you:

• Damage the property beyond normal wear and tear
• Do not pay your rent
• Lose keys or other property items
• Leave without proper notice

How Much Can a Deposit Be?

The law does not set a maximum deposit amount. However, most landlords ask for one to two months’ rent as deposit.

Monthly Rent	Typical Deposit (1 Month)	Typical Deposit (2 Months)
R3,000	R3,000	R6,000
R5,000	R5,000	R10,000
R8,000	R8,000	R16,000
R12,000	R12,000	R24,000

If a landlord asks for more than two months’ rent, you can negotiate or look for another property.

The Law on Deposit Interest

The Rental Housing Act has strict rules about rental deposits. Here is what your landlord must do by law:

1. Put Your Deposit in an Interest-Bearing Account

Your landlord must invest your deposit in an interest-bearing account. This means your deposit earns interest while you live in the property.

2. The Interest Rate Must Match a Savings Account

The interest rate must not be less than a standard savings account at a bank. Your landlord cannot use a low-interest account to reduce what you earn.

3. The Interest Belongs to You

All interest earned on your deposit belongs to you, not the landlord. When you move out, the landlord must refund your deposit plus all interest earned.

4. You Can Request Proof of Interest

At any time during your lease, you can ask your landlord for written proof of interest earned on your deposit. The landlord must provide this information.

What If the Landlord Does Not Follow the Law?

If your landlord does not put your deposit in an interest-bearing account, the law assumes they did. This means when you move out, the landlord must still pay you the interest you would have earned.

How Much Interest You Earn on Your Deposit

The amount of interest you earn depends on three things:

• The amount of your deposit
• The interest rate on the account
• How long you rent the property

Current Interest Rates in South Africa (December 2025)

As of December 2025, savings accounts in South Africa typically pay between 4% and 7% interest per year. The exact rate depends on the bank and account type.

Bank Account Type	Interest Rate Range
Standard Savings Account	4% – 5% per year
Money Market Account	5.5% – 7% per year
Notice Deposit Account	5% – 6.5% per year

Interest Calculation Examples

Example 1: One-Year Lease

• Deposit: R6,000
• Interest rate: 5% per year
• Time: 12 months (1 year)
• Interest earned: R6,000 × 5% = R300
• Total refund: R6,300

Example 2: Two-Year Lease

• Deposit: R10,000
• Interest rate: 6% per year
• Time: 24 months (2 years)
• Interest earned: R10,000 × 6% × 2 = R1,200
• Total refund: R11,200

Example 3: Six-Month Lease

• Deposit: R5,000
• Interest rate: 5% per year
• Time: 6 months
• Interest earned: R5,000 × 5% × 0.5 = R125
• Total refund: R5,125

✅ Your Rights Regarding Deposit Interest

The Rental Housing Act gives you important rights about your deposit. Here is what you can do:

1. Ask for Proof of the Deposit Account

You have the right to ask your landlord where your deposit is invested. The landlord must tell you which bank holds the money.

2. Request Interest Statements

At any time during your lease, you can ask for written proof of interest earned. The landlord must give you this information. They do not need to share private bank details, just the interest amount.

3. Get a Receipt for Your Deposit

When you pay your deposit, you are entitled to a receipt. The receipt should clearly show:

• The amount you paid
• The date you paid
• What the payment is for (rental deposit)
• The property address

4. Attend Property Inspections

Before you move in, the landlord must inspect the property with you. You should both sign a report noting any existing damage. This protects your deposit later.

When you move out, the landlord must do another inspection with you present. This must happen within seven days of your lease ending.

5. Receive Your Deposit Plus Interest

When your lease ends, you must receive your full deposit plus all interest earned, minus only legitimate deductions for damages you caused.

6. See Receipts for Deductions

If the landlord deducts money for repairs, they must provide you with receipts or invoices proving the cost. You have the right to see these documents.

Getting Your Deposit and Interest Back

The Rental Housing Act sets clear timeframes for when your landlord must return your deposit plus interest. The timeframe depends on whether there is damage.

Refund Timeframes

Situation	Refund Deadline
No damage to property	Within 7 days after lease ends
Damage that needs repairs	Within 14 days after repairs completed
You refuse final inspection	Within 21 days after lease ends

Step-by-Step Process

Step 1: Give Proper Notice

Check your lease for notice requirements. Most leases need one month’s written notice before you move out. Send your notice in writing and keep a copy.

Step 2: Schedule Final Inspection

The landlord must inspect within seven days of your lease ending. You must be present at this inspection. Compare the property condition to the entry inspection report.

Step 3: Address Any Concerns

If the landlord finds damage, discuss it during the inspection. You may be able to repair some items yourself at lower cost. Get quotes for repairs if needed.

Step 4: Get Written Breakdown

If deductions are made, the landlord must give you a detailed breakdown showing:

• Original deposit amount
• Interest earned
• Each deduction with description
• Receipts for repairs
• Final amount to be refunded

Step 5: Receive Your Money

The landlord should pay your refund by bank transfer. Avoid cash payments as these are hard to prove. Keep all payment confirmation documents.

Common Problems and How to Solve Them

Problem 1: Landlord Refuses to Show Interest Proof

Solution:

• Send a written request by email or SMS (keep proof)
• Reference Section 5(3)(g) of the Rental Housing Act
• Give the landlord 7 days to respond
• If no response, lodge a complaint with the Rental Housing Tribunal

Problem 2: Landlord Says Deposit Was Not in Interest Account

Solution:

By law, if the landlord did not put your deposit in an interest account, they still must pay you the interest. The law assumes the deposit was invested. Calculate what interest would have been earned and claim this amount.

Problem 3: Landlord Delays Refund Beyond Legal Timeframe

Solution:

• Send written demand letter stating the law
• Give specific deadline (7, 14, or 21 days from lease end)
• Keep all communication records
• File complaint with Rental Housing Tribunal if deadline passes

Problem 4: Unfair Deductions from Deposit

Solution:

• Request itemised breakdown and receipts
• Compare to entry inspection report
• Challenge deductions for normal wear and tear
• Request second opinion or quotes
• Escalate to Rental Housing Tribunal if needed

Problem 5: Landlord Refuses Final Inspection

Solution:

If the landlord fails to inspect within 7 days of lease ending, they forfeit the right to make deductions. The full deposit plus interest must be refunded. Send written notice demanding full refund.

🚨 Rental Scams to Avoid

Rental scams are on the rise in South Africa. In 2025, reports show a sharp increase in rental fraud. Here is how to protect yourself:

Common Rental Scams

Scam 1: Fake Property Listings

Scammers advertise properties that do not exist or are not available. They use stolen photos from real listings. The rent is usually below market rate to attract victims quickly.

Scam 2: Deposit Before Viewing

Fake landlords pressure you to pay a deposit before viewing the property. They claim someone else is interested or that they are overseas. After you pay, they disappear.

Scam 3: Hijacked Listings

Scammers copy real rental ads and change the contact details. The property exists, but the scammer does not own it. They collect deposits from multiple people.

Scam 4: Fake Estate Agents

Criminals pretend to be estate agents with professional emails and fake credentials. They may even show you the property using stolen keys before taking your money.

Red Flags – Warning Signs

• Rent price much lower than similar properties
• Landlord refuses to meet in person
• Landlord claims to be overseas or unavailable
• Pressure to pay deposit immediately
• No viewing allowed before payment
• Requests payment via cash, cryptocurrency, or prepaid cards
• No written lease agreement offered
• Landlord cannot prove property ownership
• Communication only via WhatsApp or email
• Poor grammar or spelling in communications

How to Protect Yourself

If You Are Scammed

If you paid money to a scammer, take these steps immediately:

• Contact your bank to try reverse the payment
• Open a case at your nearest police station
• Report to the platform where you saw the listing (Facebook, Gumtree, etc.)
• File a complaint with the Property Practitioners Regulatory Authority if an agent was involved
• Report to the South African Banking Risk Information Centre (SABRIC)

✅ Where to Get Help

Rental Housing Tribunal

The Rental Housing Tribunal is a free service that resolves disputes between tenants and landlords. You do not need a lawyer.

The Tribunal can help with:

• Deposits not refunded
• Interest not paid on deposits
• Unfair deductions from deposits
• Landlord refusing to provide interest proof
• Any unfair practices by landlords

How the Tribunal Works:

• You lodge a complaint (forms available at tribunal offices)
• Investigation takes up to 14 days
• Case officer tries mediation first
• If mediation fails, there is a hearing
• The Tribunal makes a legally binding decision
• Total process takes up to 3 months

Contact Details:

• National number: 0860 106 166
• Gauteng: 011 355 4000
• National (alternative): 012 483 5020
• Find your provincial office online or at your local municipality

Other Helpful Organisations

Organisation	Contact	When to Contact
Property Practitioners Regulatory Authority (PPRA)	www.ppra.org.za	Verify estate agent registration, report agent misconduct
Financial Sector Conduct Authority (FSCA)	0800 110 443 www.fsca.co.za	Financial complaints and consumer protection
South African Police Service	10111 (emergency) Your local station	Report rental fraud and scams
LegalWise	0860 587 587 www.legalwise.co.za	Affordable legal advice for members

Documents You Need for Tribunal Complaint

• Copy of your ID document
• Written lease agreement (or details of verbal agreement)
• Proof of deposit payment (receipt, bank statement)
• Any communication with landlord (emails, SMS, letters)
• Property inspection reports (entry and exit)
• Photos or videos of property condition
• Landlord contact details and property address

Know Your Rights: Under South African law, your deposit must earn interest and that interest belongs to you. Do not let landlords tell you otherwise.

Get Everything in Writing: Always get a receipt for your deposit. Request written proof of interest at least once during your lease. Keep copies of all documents.

Document Property Condition: Take photos or videos when you move in and when you move out. Date-stamp these. This evidence protects your deposit.

Beware of Scams: Never pay a deposit before viewing a property in person and meeting the landlord. Verify estate agents are registered with PPRA. If rent seems too cheap, it is probably a scam.

Use the Tribunal: If your landlord refuses to refund your deposit with interest, do not give up. The Rental Housing Tribunal is free and legally binding. You do not need a lawyer.

Stay Informed: Rental laws can change. Check the Department of Human Settlements website or your local municipality for updates to the Rental Housing Act.