Deposit refund dates and interest

The rules, in order

1. The deposit is kept in an interest-bearing account. The tenant may ask for written proof of the interest earned.
2. Landlord and tenant inspect the property together at the start of the lease, and again in the three days before it ends.
3. If nothing is owed, the deposit and interest are refunded within 7 days after the lease ends.
4. If arrears or the reasonable cost of repairs are deducted, the balance is refunded within 14 days after the property is restored, with the receipts and invoices for what was deducted available to the tenant.
5. If the tenant does not attend the outgoing inspection, the landlord inspects within 7 days after the lease ends and refunds the balance within 21 days after the lease ends.

How the interest is estimated

Compounded monthly at the rate you enter, from the date the deposit was paid to the 7-day refund date, with the days after the last full month at the simple daily rate. Banks calculate interest their own way, and rates change; the bank's statement of interest is the figure that counts.

Questions

How long does a landlord have to refund a deposit in South Africa?

Under the Rental Housing Act: 7 days after the lease ends if nothing is owed; 14 days after the property is restored if repair costs or arrears are deducted; and 21 days after the lease ends if the tenant did not attend the outgoing inspection.

Does the tenant get interest on the deposit?

Yes. The landlord must keep the deposit in an interest-bearing account and refund it with the interest earned. The tenant may ask for proof of the interest from the bank.

What may a landlord deduct from the deposit?

Amounts the tenant owes under the lease, such as arrear rent, and the reasonable cost of repairing damage caused during the lease and replacing lost keys. Damage is judged by comparing the incoming and outgoing inspections.

What if there was no incoming inspection?

Without the incoming inspection, the property is treated as having been in a good state of repair, which weakens any claim for damage against the deposit.