Interest on rental deposit

T

trasver

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Hi there

So I've done a search but can't find anything that is specific to my query.


I rented a house in 2010 and am moving out at the end of the month. The rental agreement is between myself and the landlord directly and there is is a clause in the lease that states that I, as the person leasing the house, am not entitled to receive interest on the deposit.


As far as I am aware the rental housing act states the landlord is legally bound to paying me the interest accrued on the deposit? Or was this just introduced in the 2014 amendment?


Is it legal for them to put such a clause in a lease agreement or should I insist that also pay me the interest on the deposit when they return the deposit?

Thanks for any help!
 
There is meant to be a clause in the contract stating the exact interest rate as far as I recall so this does seem a bit dodgy.

That being said you did sign the contract as is and accepted no interest...so that kind of buggers you right there.
 
SauRoNZA said:
There is meant to be a clause in the contract stating the exact interest rate as far as I recall so this does seem a bit dodgy.

That being said you did sign the contract as is and accepted no interest...so that kind of buggers you right there.
Click to expand...
He is in the right, his deposito must be deposited into a interest bearing account. No policy, of that outside of the law, may overwrite the law, even when stipulated in a contract. As per any contract, the terms and conditions must be explained in terms of the law, in this case the Rental Housing Act. However, if the homeowner finds him or herself in the wrong he/she may seek to deduct the interest plus a sum of the deposito as damages. What I'm saying is, they will try to correct their position and if you fight them through the proper channels it will take 'time' to resolve the case.

All of the legal information in summary is available here: https://www.tpn.co.za/Guest/faq_legal.aspx

Also see Tenant and Landlord FAQs
 
The laws and then there are enforceable laws. Without and agreed interest rate and terms you are going to spend more time working to get 1 or 2%. Count yourself lucky that you are getting some of you deposit back. Ask for interest and see what suddenly needs to get fixed. Like that scuff mark in the chipped mirror in the bathroom, the cupboard door under the sink, doorway that you never listed on the form the day you moved in well now that needs to be fixed, unfortunately to do that the tiles in the passage need to be replaced. Sorry but after you moved out the carpets needed to be steam cleaned and that with the repairs [see list] and invoice you need to pay in 1 months rent over and above the deposit.
 
Wow, thank you everyone so much for your excellent assistance/advice - my suspicion was that the law would overrule the contract but I also suspect that, as a few of you have pointed out, that it is probably a step too far to push for the interest. It was only when a few people had mentioned it to me that I thought I should get clarity. Thanks again everyone, I really appreciate it.



@Bond - I’m not sure if I’m feeding a troll here or what but I came to a forum to get advice on a query I have (which is, as far as I understand it, one of the purposes of such forums), I received excellent advice which I appreciate. As for entitlement I think you’re confused - no entitlement - just confusion about what I’m supposed to request upon exit....simples
 
trasver said:
Hi there

So I've done a search but can't find anything that is specific to my query.


I rented a house in 2010 and am moving out at the end of the month. The rental agreement is between myself and the landlord directly and there is is a clause in the lease that states that I, as the person leasing the house, am not entitled to receive interest on the deposit.


As far as I am aware the rental housing act states the landlord is legally bound to paying me the interest accrued on the deposit? Or was this just introduced in the 2014 amendment?


Is it legal for them to put such a clause in a lease agreement or should I insist that also pay me the interest on the deposit when they return the deposit?

Thanks for any help!
Click to expand...
You can only claim interest from the time of the law being implemented.
 
Interesting topic I am in the same boat and the lease stated this when I signed it at the beginning
DEPOSIT

The LESSEE shall immediately on signature of this agreement, pay a deposit of xxxxxxx to the LESSOR. On termination of the Lease, the deposit, together with interest earned thereon, shall be dealt with as follows: -



5.1. The LESSOR may, at his discretion, apply the deposit and interest earned thereon, towards the payment of all amounts for which the LESSEE is liable under this agreement, including, but not limited to, arrear rental, unpaid electricity, the cost of repairing damage to the PREMISES and/or replacing lost keys;



5.2 The balance of the deposit plus the interest earned thereon shall be refunded to the LESSEE, after the amounts referred to above have been determined, and subject to clause 17.4 (“within 14 (Fourteen) days after the restoration of the dwelling to the LESSOR”). Should it be determined that no amounts are due and owing by the LESSEE to the LESSOR in terms of this agreement, the deposit, together with accrued interest in respect thereof, shall be refunded to the LESSEE, within 7 (seven) days of the expiration of the Lease.
 
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