Rental Deposit Disputes: How to Get Your Money Back

What is a Rental Deposit?

A rental deposit (also called a security deposit) is money you pay to your landlord at the start of your lease. It serves as financial protection for the landlord in case you:

Damage the property beyond normal wear and tear.
Fail to pay rent.
Leave owing municipal accounts (water, electricity).

The deposit is your money—the landlord is just holding it. If you leave the property in good condition and paid all your bills, you should get it back in full, with interest.

Landlord's Obligations

Your landlord has specific legal duties regarding your deposit:

1. Invest the Deposit in an Interest-Bearing Account

The Rental Housing Act requires landlords to place your deposit in an interest-bearing account at a registered financial institution (bank).

The interest belongs to you, not the landlord.

2. Provide a Receipt

Your landlord must give you a receipt when you pay the deposit.

3. Conduct Inspections

The landlord must conduct:

Incoming inspection: When you move in, to document the property's condition.
Outgoing inspection: When you move out, to check for damages.

Important: If the landlord fails to do an outgoing inspection, they lose the right to deduct from your deposit.

4. Return the Deposit on Time

The landlord must refund your deposit:

Within 7 days if there are no damages.
Within 14 days after repairs are completed if there are deductions (with itemized invoices).

What Can Landlords Deduct?

Landlords can only deduct for:

Damage Beyond Normal Wear and Tear

Examples of normal wear and tear:

Faded paint or minor scuff marks
Worn carpet in high-traffic areas
Loose door handles

Examples of damage you can be charged for:

Holes in walls from picture frames
Broken windows or doors
Stains on carpets

Unpaid Rent
Outstanding Municipal Accounts

What to Do if Your Landlord Won't Return Your Deposit

Step 1: Send a Formal Written Demand

Send a formal letter requesting the return of your deposit with a 7-day deadline.

Step 2: Lodge a Complaint with the Rental Housing Tribunal

The Rental Housing Tribunal is a free dispute resolution service. They handle deposit refunds.

You generally have 3 months from the date the deposit was due to file a complaint.

Step 3: Small Claims Court (Alternative)

If the dispute is under R20,000, you can take your landlord to Small Claims Court.

Key Takeaways

Your deposit must be held in an interest-bearing account, and the interest belongs to you.
Landlords can only deduct for damage beyond normal wear and tear, unpaid rent, or outstanding bills.
You should receive your deposit within 7 days if there are no deductions.
Document everything—take photos when you move in and out.
Use the Rental Housing Tribunal for disputes (free service).
If the landlord doesn't conduct an outgoing inspection, they lose the right to make deductions.