Renting guide

How rental deposits work

A rental deposit is security for amounts lawfully owed under the lease; it is not automatically the landlord’s money.

6 MIN READ · LAST REVIEWED 27 JULY 2026
On this pageWhile you are rentingAt move-outIf there is a dispute
Key takeaway
Protect your deposit with proof of payment, signed inspections, photos and written records.
General education only
Rules and personal circumstances differ. Confirm current details with the relevant official source or a qualified professional before acting.

While you are renting

Under the Rental Housing Act, the landlord must place the deposit in an interest-bearing account with a financial institution. A tenant may ask for written proof of the interest accrued.

At move-out

Arrange the joint outgoing inspection within three days before the lease ends and compare it with the incoming defect list. Fair wear and tear is not the same as tenant-caused damage.

If nothing is owed, the deposit plus interest must generally be refunded within seven days after the lease ends. When lawful deductions are made, the balance is generally due within 14 days after the property is restored, and repair receipts must be available for inspection.

If there is a dispute

Ask for the calculation, proof of interest and receipts in writing. In the Western Cape, tenants and landlords can lodge residential rental complaints with the Rental Housing Tribunal.

A simple example

If the landlord deducts R1 200 for a damaged cupboard, ask for the invoice or receipt and compare the damage with the signed incoming inspection. The remaining deposit and interest should still be accounted for.

ILLUSTRATION ONLY — YOUR NUMBERS AND TERMS WILL DIFFER

Common mistakes

  • Paying cash without a receipt
  • Having no signed incoming or outgoing inspection
  • Treating the deposit as the final month’s rent without agreement

Quick checklist

  • Keep proof of the deposit payment
  • Save the lease, defect list and date-stamped photos
  • Book the outgoing inspection before the final three days
  • Request an itemised calculation and receipts for deductions

Frequently asked questions

What is the main takeaway from how rental deposits work?

Protect your deposit with proof of payment, signed inspections, photos and written records.

What should I do first?

Keep proof of the deposit payment

What is a common mistake?

Paying cash without a receipt

Put it into practice

Use the numbers, not a guess

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Sources and review

Reviewed on 27 July 2026. Official links below are the source of current legal, tax or regulatory facts; practical guidance is general.