Your First Lease: Deposit, Inspections and the Rental Housing Act

Most disputes between tenants and landlords in South Africa come down to two things: a deposit, and an inspection that either did not happen or was not written down. Both are governed by the Rental Housing Act, and both are far more in the tenant's favour than most first-time renters realise.

The deposit

A landlord may ask for a deposit. What happens to it afterwards is not discretionary.

It must be invested in an interest-bearing account, and the interest belongs to you, not the landlord. You are entitled to ask for written proof of the interest earned at any point during the lease.

It may only be used for what the lease allows — typically damage beyond fair wear and tear, and arrear rent or utilities. It is not a general fund for the landlord's convenience, and it is not the last month's rent unless the lease says so.

Fair wear and tear is not damage. Carpet that has thinned over three years, paint that has faded, a scuff on a skirting board — these are the ordinary consequences of living somewhere. A broken window is different. The distinction is where most deposit disputes actually sit.

The two inspections, which decide everything

This is the part first-time renters skip, and it is the part that determines whether you get your deposit back.

The incoming inspection happens jointly, with the landlord or their agent, before you move in. You walk the property together and record its condition. That record is attached to the lease.

The outgoing inspection happens jointly too, in the last few days of the lease. The landlord compares the property against the incoming record.

The leverage sits in what happens when the landlord does not do them. If the landlord fails to inspect at the outset, they are taken to have accepted the property was in good order. If they fail to inspect at the end, they are taken to have accepted there is no damage — and the deposit becomes repayable in full.

So the practical advice is not merely "do the inspection". It is: insist on it in writing, and keep the reply. A landlord who will not inspect has weakened their own position considerably.

Take dated photographs of everything at move-in regardless — every room, every existing mark, inside cupboards, the geyser, the meter readings. It costs ten minutes and it is the evidence that settles arguments two years later.

Getting the deposit back

The timelines are short and specific:

• No damage: the deposit plus interest must be refunded within seven days of the lease ending.
• Damage deducted: the landlord may deduct the cost of repairs, must give you receipts, and must refund the balance within fourteen days of restoring the property.
• No outgoing inspection done: the full deposit plus interest is due within seven days.

If deductions appear that you dispute, ask for the invoices. A landlord who cannot produce them is not entitled to the money.

When it goes wrong: the Rental Housing Tribunal

Every province has a Rental Housing Tribunal, and this is the single most useful thing a tenant can know.

It handles disputes about deposits, unlawful deductions, maintenance failures, unfair practices and utility overcharging. It is free, you do not need a lawyer, and its rulings are binding — they carry the weight of a magistrates' court order.

It is also considerably faster than court. For a deposit dispute of a few thousand rand, this is the forum, and the mere mention of it resolves a good number of cases before they get there.

What the lease can and cannot do

A lease is a contract, but it cannot contract you out of the Act.

It must be in writing if you ask for it. A verbal lease is valid, but you are entitled to a written one, and you should have it.

A fixed-term lease can be cancelled early. Under the Consumer Protection Act a tenant may cancel a fixed-term lease by giving 20 business days' notice. The landlord may charge a reasonable cancellation penalty — reasonable meaning related to their actual loss, such as the cost of finding a new tenant, not the whole remaining rent.

Escalation must be stated. An annual increase written into the lease is enforceable. One invented mid-term is not.

The landlord must maintain the property. Structural repairs, plumbing, electrical and the geyser are generally theirs. You are responsible for what you break and for ordinary upkeep.

You may not simply withhold rent when a repair is not done, however tempting. That puts you in breach and hands the landlord the stronger position. Report it in writing, give a reasonable period, and take it to the Tribunal if it is ignored.

What a landlord may ask for before approving you

Screening is normal and lawful, within limits.

Expect to provide identification, proof of income — usually three payslips or three months of bank statements — and often a credit check, for which you must give consent. A landlord may decline you on affordability grounds. What they may not do is discriminate on the grounds the Constitution protects.

Two practical points. First, check your own credit record before you apply, because a decline for a listing you did not know about is avoidable and the correction takes weeks. Second, if your record is thin rather than bad — common for someone renting their first place — offering a larger deposit or a guarantor is a reasonable negotiating position, and many landlords will take it.

Be careful with a guarantor, though. Standing behind someone else's lease is a suretyship, and it makes the guarantor liable for the rent, not merely a reference.

Sharing a place

Where two or more people rent together, the lease structure decides what happens if one leaves.

One lease, all names on it usually makes each tenant jointly and severally liable — meaning the landlord may claim the whole rent from any one of you, not a share. If your housemate stops paying, the shortfall is legally yours.

Separate leases per room limit each person to their own rent, but are less common in ordinary residential lettings.

Neither is wrong, but know which you have signed. If it is the first, agree in writing between yourselves who pays what and what happens if someone moves out early — the landlord is not bound by that agreement, but it settles the argument between you.

Also decide who holds the deposit contribution and how it is split at the end. Deposits are refunded to the lease, not to individuals, and a departing housemate expecting their share back on the day they leave is a recurring source of conflict.

Before you sign, read these clauses

• The escalation percentage and when it applies.
• The notice period for ending the lease, and whether it matches the 20 business days the Consumer Protection Act allows you.
• What the deposit may be used for.
• Who is responsible for which repairs, particularly the geyser.
• Whether subletting or house guests are restricted.
• What happens on early cancellation, and how any penalty is calculated.

The costs beyond rent

Budget for these, because the first month is always the expensive one:

• Deposit, commonly one to two months' rent
• First month's rent in advance
• A lease or administration fee, where charged
• Utility deposits to the municipality
• Moving costs
• Contents insurance — the landlord insures the building, not your belongings

That first-month total is frequently two and a half to three times the monthly rent. It is the number that catches people out, and it is worth having saved before you start viewing.

Frequently asked questions

Can my landlord keep my deposit for cleaning?

Only where the lease provides for it and the property is left less clean than it was received, allowing for fair wear and tear. Receipts must be produced for the amount deducted.

What if my landlord will not do an outgoing inspection?

Then they are treated as having accepted there is no damage, and the full deposit plus interest is due within seven days. Ask for the inspection in writing so you can show you requested it.

Can rent be increased mid-lease?

Not unless the lease itself provides for it. An escalation clause is enforceable; an increase announced without one is not.