As a tenant in South Africa, your deposit is a significant financial investment in your rental property. The Rental Housing Act protects your rights regarding the deposit, including the requirement for landlords to invest it in an interest-bearing account. But what happens if your landlord fails to comply?

The Law: Section 5 of the Rental Housing Act

Section 5 of the Act states that landlords must invest the deposit in an interest-bearing account with a financial institution. The landlord must also pay the interest accrued on the deposit to the tenant at the end of the lease period, unless the deposit is used to offset any amounts owed by the tenant.

What to Do if Your Landlord Fails to Comply

If your landlord fails to invest your deposit in an interest-bearing account or return it with interest, you can take the following steps:

1. Request a written statement: Ask your landlord for a written statement indicating where the deposit is invested and the interest earned.
2. Apply to the Rental Housing Tribunal: If your landlord fails to comply, apply to the Rental Housing Tribunal (RHT) for assistance.
3. Claim damages or compensation: You can claim damages or compensation from your landlord for failure to invest the deposit or return it with interest.

The Role of the Rental Housing Tribunal

The RHT can:

• Order the landlord to invest the deposit in an interest-bearing account
• Order the landlord to pay the interest accrued on the deposit
• Award damages or compensation to the tenant
• Take other necessary steps to resolve the dispute

Conclusion

Your deposit is your money, and the law protects your rights. Don’t hesitate to assert your rights if your landlord fails to comply with the Rental Housing Act. Remember to seek legal advice or consult with a consumer protection organization if needed.

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