What happens to your rental deposit
RE/MAX presents more on…
What happens to your rental deposit? Knowing the facts and figures. A landlord is legally entitled
to request a deposit from their tenants. One month’s rent used to be the standard deposit amount;
however, in more recent years landlords have started asking
for two months rent as a deposit. The increase
has come about due to defaulting tenants and the lengthy
expensive process involved in evicting them.
Tenants are protected by the PIE Act.
It can take at least 8 to 10 weeks for an eviction order to be granted. Besides the fact that the landlord
is not getting a rental income
from the defaulting tenant during that period, they will
also have to pay legal costs. An unopposed eviction could cost
between R12 000 and R20 000. The landlord is legally required
to place the money in an interest bearing account. The deposit, including the interest,
always remains the tenants money.
The landlord is allowed to deduct from the deposit any
expenses incurred by damages caused.
The deposit must be refunded to the tenant no later than 14 days
after the restoration of the property. However,
it’s important to know that the landlord cannot use
the deposit for general maintenance.
If there is no damage to the property, the full
deposit and interest must be paid to the tenant within 7 days
of the lease’s expiration date. If there are any disputes,
it’s best to contact the Rental Housing Tribunal.
For more useful facts to help you figure things out….
ask RE/MAX. RE/MAX.THERE’S MORE.