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How to safeguard your rental deposit

In most instances, tenants must pay a security deposit when entering into a residential lease agreement. The deposit amount usually depends on the landlord, but is on average equivalent to one to two month’s rent.

READ: The value of a good lease agreement

Naturally, at the end of the lease period, the tenant will want to get their deposit refunded. In terms of the Rental Housing Act, the landlord may not use any part of this deposit until the termination of the lease. The deposit must be invested in an interest-bearing account for the benefit of the tenant for the duration of the lease, subject to certain provisions.

PG van der Linde, rental manager for Seeff Pretoria East says when the lease ends, the landlord can, however, deduct certain amounts from the deposit. This includes outstanding rent and utilities costs, lost keys, and the costs of repairs required to return the property to its original state, excluding fair wear and tear.

READ: Fine Print: Navigating misrepresentation in lease agreements

It is therefore important for tenants to adhere to certain principles. These include:

Pay the rent on time, and in full. Van der Linde says this includes the rent as well as any utilities and other costs which the tenant is required to pay. The funds must be in the landlord’s account on or before the first of every month as there is no grace period beyond this.

Keep the property maintained. Any maintenance issues must immediately be reported to the agent or landlord, and documented in writing for record purposes. Repairs which need to be undertaken due to damage caused because of negligence will be the responsibility of the tenant.

Property must be restored and thoroughly cleaned vacating it. Cupboards, surfaces, walls, doors, and windows must be thoroughly cleaned and carpets steam cleaned. The unit must be aired out, and pet smells and stains (if any) eradicated. Holes must be filled and the property painted if necessary.

Vacating the property. The tenant should be out of the property by midday on the lease expiry date and leave the property in a clean and restored state so that the new tenant can move in. Bins should be left empty for the new tenant. A full set of keys and all remote controls must be handed over then as well.

Tenants must attend the rental inspections. Caché Pasqualle, rental manager for Seeff Sandton says the tenant should be present for the entry and exit inspections, and ensure the property is handed over in the same condition as when they took occupation. Damage can be costly for the tenant, so extra care should be taken.

Condition of Property Report. This is a legal requirement and must be done on occupation and signed by both the landlord and tenant, forming part of the lease agreement. It records the property's state on occupation and serves as a basis for the exit inspection to determine repairs needed due to tenant negligence.

Handling disputes. The deposit, less any repair costs, must be refunded to the tenant within 14 days. The landlord must provide proof of any repairs and deductions. Disputes relating to the deposit or any deductions must be lodged with the Rental Housing Tribunal.

The rental deposit usually represents a considerable amount of money for tenants and they should therefore live responsibly and not let the property deteriorate. Maintenance issues and repairs must be taken care of when it occurs. Tenants should not wait until the lease expires as that can be costly, says Helga Clemo, licensee for Seeff Century City.

READ: Landlords: A guide to finding the ideal rental candidates

Additional information: 

According to the Department of Human Settlements, a Rental Housing Tribunal has the authority to deal with disputes, complaints or problems between tenants and landlords in the rental housing dwellings:

- Non-payment of rentals
- Failure to refund the deposit
- Invasion of tenant’s privacy, including family members and visitors
- Unlawful seizure of tenant’s goods
- Discrimination by landlord against prospective tenants
- The changing of locks
- Lack of maintenance and repairs
- Illegal evictions
- Illegal lockout or illegal disconnection of services
- Damage to property
- Demolition and conversion
- Forced entry
- House rules
- Intimidation
- Issuing of receipts
- Municipal services
- Nuisance
- Overcrowding and health matters

In terms of section 13(13) of the Rental Housing Act 50 of 1999, a ruling of the Tribunal is deemed to be an order of a Magistrate's Court in terms of the Magistrate's Court Act, 1994.

* Disclaimer: The articles on these web pages are provided for general information purposes only. Whilst care has been taken to ensure accuracy, the content provided is not intended to stand alone as legal advice. Always consult a suitably qualified attorney on any specific legal problem or matter.

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