Rental Deposit Interest Calculator South Africa (2026) — How Much Does Your Landlord Owe You?

Use this free calculator to find out exactly how much interest your landlord owes you on your rental deposit. Under South Africa's Rental Housing Act, your landlord must invest your deposit in an interest-bearing account and pay you the interest when your lease ends. Enter your deposit details below to see what you're owed.

How Much Interest Is Owed on My Rental Deposit?

The interest owed on your rental deposit depends on three factors: the deposit amount, the interest rate, and how long the deposit was held. South African law requires that landlords invest the deposit in an interest-bearing account, and the interest compounds monthly.

The formula for compound interest is:

For example, a R10,000 deposit held for 2 years at 5.5% annual interest earns approximately R1,131 in interest. That means your landlord owes you R11,131 when you move out. Many tenants never claim this interest because they do not know their rights, leaving money on the table.

Rental Housing Act: Your Deposit Rights

The Rental Housing Act 50 of 1999 (as amended by the Rental Housing Amendment Act 35 of 2014) is the primary legislation governing the relationship between landlords and tenants in South Africa. Section 5(3)(g) specifically deals with deposits and sets out clear obligations for landlords.

The Act applies to all residential rental agreements in South Africa, regardless of whether the lease is written or verbal. Even if your lease says nothing about interest on deposits, the law still requires it. A landlord cannot contract out of these obligations — any lease clause that tries to waive the tenant's right to deposit interest is unenforceable.

What Must Your Landlord Do With Your Deposit?

Under the Rental Housing Act, your landlord has the following obligations regarding your deposit:

1. Invest the deposit in an interest-bearing account with a financial institution (bank) within a reasonable time after receiving it. The account must be a separate, identifiable account — the landlord cannot simply put it into their personal account.
2. Pay you the interest earned on the deposit when the lease ends. The interest accrues from the date the deposit is paid to the date the lease terminates.
3. Provide written proof of the investment if you request it. You have the right to know which bank holds your deposit and what interest rate it earns. Ask for this in writing at the start of your lease.
4. Not use the deposit for their own purposes. The deposit remains your money — the landlord is merely holding it as security. Using it for personal expenses is a breach of the Act.

If your landlord uses a managing agent or estate agent, the agent is responsible for ensuring compliance. Many agents invest tenant deposits in a trust account that earns interest.

When Must Your Landlord Return Your Deposit?

The Rental Housing Act sets strict timelines for the return of your deposit after the lease ends:

• 7-day rule: If the landlord intends to deduct any amounts from the deposit (for damages, unpaid rent, etc.), they must provide an itemized list of deductions within 7 days of the lease ending. This list must specify each deduction and its cost.
• 14-day rule: The landlord must refund the deposit plus interest, minus any agreed deductions, within 14 days of the lease ending.
• No inspection = full refund: If the landlord fails to inspect the property before or on the day you move out, they cannot make any deductions. The full deposit plus interest must be returned within 14 days.

Can Your Landlord Deduct From Your Deposit?

Yes, but only for specific reasons and with proper documentation. Your landlord can deduct from your deposit for:

• Damage beyond fair wear and tear — holes in walls, broken windows, damaged fixtures, or stains that require professional cleaning.
• Unpaid rent or utilities — if you owe rent or have unpaid utility bills at the end of the lease.
• Breach of lease obligations — for example, if you were required to maintain the garden and let it die.

Your landlord cannot deduct for:

• Normal wear and tear — faded paint, minor scuff marks on walls, worn carpets, general aging of fixtures. These are expected with normal use over time.
• Repainting — unless you painted without permission or the walls are damaged beyond normal use. A landlord cannot charge you to repaint simply because they want to freshen up for the next tenant.
• Pre-existing damage — damage that was present when you moved in. This is why an incoming inspection report is critical.
• General maintenance — replacing ageing taps, servicing geysers, or fixing things that broke due to age rather than misuse.

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

If your landlord refuses to return your deposit or withholds more than they are entitled to, follow these steps:

1. Send a formal demand letter. Write to your landlord (email is fine, but keep proof) demanding the return of your deposit plus interest within 7 days. Reference Section 5(3)(g) of the Rental Housing Act. Be specific about the amount owed.
2. Keep all documentation. Gather your lease agreement, proof of deposit payment, move-in and move-out inspection reports, photos, and any communication with your landlord.
3. Contact the Rental Housing Tribunal. If the landlord does not respond or refuses to pay, lodge a complaint with the Rental Housing Tribunal in your province. The service is free — you do not need a lawyer.
4. Attend the hearing. The Tribunal will schedule a hearing where both parties present their case. Bring all your documentation. The Tribunal has the power to make a binding ruling.
5. Enforce the ruling. If the Tribunal rules in your favour and the landlord still does not pay, the ruling can be made an order of the Magistrate's Court and enforced like any other court order.

Rental Housing Tribunal Contact Details by Province

Frequently Asked Questions