Rental deposit rules in South Africa

Deposit disputes are the most common fight between landlords and tenants. Most of them start with a lease clause that doesn't match the Rental Housing Act. Here is what the Act expects, in plain language.

1. Where the deposit must be kept

Under section 5 of the Rental Housing Act, a landlord may ask for a deposit before the tenant moves in. The deposit must be invested in an interest-bearing account with a financial institution. It may not sit in the landlord's day-to-day account.

2. The interest belongs to the tenant

Interest earned on the deposit accrues to the tenant. A lease that says "no interest is payable on the deposit" conflicts with the Act, and it is one of the most common problems we see, even in professionally drafted templates. During the lease the tenant may ask for proof of the interest earned, and the landlord must provide it.

3. Inspections at the start and the end

Landlord and tenant should inspect the property together before the tenant moves in, and again within three days before the lease ends, so that any damage can be agreed and recorded.

4. Refund deadlines

7 days after the lease ends, if nothing is owed: the full deposit plus interest.
14 days after the repairs are done, if there was damage: the balance after reasonable repair costs, with receipts available to the tenant.
21 days after the lease ends, if the tenant didn't attend the exit inspection.

5. Lease clauses to check

The deposit amount and who holds it.
That the deposit goes into an interest-bearing account, with interest to the tenant.
Ingoing and outgoing inspection wording.
The refund deadlines above, written in, not left vague.
Blank template fields, such as an empty deposit amount or account details.

Check a lease in under a minute. LeaseLens scans a South African residential lease against the Rental Housing Act, the Consumer Protection Act and POPIA, and flags risky clauses by clause number. Your first scan each month is free, and leases are never stored.

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Also read: Cancelling a lease early in South Africa.

More guides: Lease clauses that don't hold up · Rent escalation clauses.

New guides: Tenant checklist before signing · Landlord entry and inspections.

This guide gives general information for South African residential leases, not legal advice. Laws change; check the current Act or speak to an attorney before relying on a clause. Last reviewed October 2026.