Rental Refund?

R13...

R13...

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When you rent a property through letting agents the deposit is normally placed in an interesting earning trust account, right? My question is when you are refunded do you as the tenant get the interest minus costs or just the original (not really as you lose money over time) you paid in when you moved in?
 
From what i understand, this only applies if you are renting directly from the owner. He has to put your deposit into an interest bearing account and has to pay you the original plus interest back at termination of lease. With letting agents this does not apply.

Read up on this 2 years ago as I had problems with my landlord paying interest on my deposit. Ended up getting quite a nice amount!
 
They need to give you interest on your deposit.

It's LAW.

edit: This includes renting agents
 
Yip, standard contract, with agents or the owner, should read that it's placed in an interest bearing account and you get the interest too.
 
this might help: "How much interest does the tenant's deposit earn?
A landlord must invest the tenant's deposit in an interest bearing account with a financial institution, where the rate if interest may not be less than a savings account. If the deposit is held by an estate agent, 50% of the interest earned on their trust account is paid to the Estate Agent Affairs Board."

http://www.rentbay.co.za/Site/FAQ/FAQ.aspx?Type=Landlords
 
R13... said:
When you rent a property through letting agents the deposit is normally placed in an interesting earning trust account, right? My question is when you are refunded do you as the tenant get the interest minus costs or just the original (not really as you lose money over time) you paid in when you moved in?
Click to expand...

Well my tenant has paid me a deposit, but rarely pays on time. She almost always pays before the 10th of every month, but its never on the agreed date.

She will get her deposit back minus costs and no interest. If she would like to fight the interest, I have proof on my bank statements as well as the few times I have asked her to pay on time.

davemc said:
You get what the lease contract says you get.
Click to expand...

+1
 
Most savings accounts give interest of about 1%, so I don't know why you would bother.

If your deposit was R5000, you would after a year get R5050 back. So not worth the fight (if that is required) to get the extra money.
 
Yea seriously squabbling over such a tiny amount seems pointless in my opinion.

Just be happy to get the full deposit back.
 
R13... said:
When you rent a property through letting agents the deposit is normally placed in an interesting earning trust account, right? My question is when you are refunded do you as the tenant get the interest minus costs or just the original (not really as you lose money over time) you paid in when you moved in?
Click to expand...

NO. Rental agents are not required to place the deposit into an interest bearing account. It's different for private leasing.
 
Oh well guess I'll let that one slide. Being a landlord myself I wondered because a previous tenant forfeited his deposit to me (with interest) and I used letting agents.
 
AvOk said:
Well my tenant has paid me a deposit, but rarely pays on time. She almost always pays before the 10th of every month, but its never on the agreed date.

She will get her deposit back minus costs and no interest. If she would like to fight the interest, I have proof on my bank statements as well as the few times I have asked her to pay on time.



+1
Click to expand...

If you are a non-rental agent then unfortunately the law is not on your side with regards to the deposit. Breach of an agreement is a separate issue. You are not allowed to penalise a tenant financially in any way. BOTH parties must agree to repairs to be conducted which may then be deducted from the deposit.
 
Actually, it might not be a tiny amount- he never mentioned the amount.

My deposit was R16,000 - I've been there for two years. If the interest rate was 3% when I moved in - thats just under R1,000 in interest...
 
xrapidx said:
Actually, it might not be a tiny amount- he never mentioned the amount.

My deposit was R16,000 - I've been there for two years. If the interest rate was 3% when I moved in - thats just under R1,000 in interest...
Click to expand...
Nowhere near R16000...LOL
 
Pitbull said:
They need to give you interest on your deposit.

It's LAW.

edit: This includes renting agents
Click to expand...

Shake&Bake said:
Yip, standard contract, with agents or the owner, should read that it's placed in an interest bearing account and you get the interest too.
Click to expand...
+1
Only allows for deductions for damage etc.

Json C said:
If you are a non-rental agent then unfortunately the law is not on your side with regards to the deposit. Breach of an agreement is a separate issue. You are not allowed to penalise a tenant financially in any way. BOTH parties must agree to repairs to be conducted which may then be deducted from the deposit.
Click to expand...
True, the lease agreement has a set penalty amount due for each time rent is late (to cover costs such as legal notices and bank charges) and this should be billed as it occurs, but if unpaid by the time the tenant vacates then these outstanding amounts can be deducted from the deposit.
 
Frankie said:
+1
Only allows for deductions for damage etc.


True, the lease agreement has a set penalty amount due for each time rent is late (to cover costs such as legal notices and bank charges) and this should be billed as it occurs, but if unpaid by the time the tenant vacates then these outstanding amounts can be deducted from the deposit.
Click to expand...

If this is in the lease agreement then it is still subject to agreement by both parties when the deposit is to be paid back. The same applies if the landlord failed to fullfil certain obligations outlined in the agreement.
 
Json C said:
If this is in the lease agreement then it is still subject to agreement by both parties when the deposit is to be paid back. The same applies if the landlord failed to fullfil certain obligations outlined in the agreement.
Click to expand...
Yes, but if you as the landlord are holding the money, and the tenant is in arrears with rent or late payment fees then you sure as hell are going to recover this from the money in hand.

Late payment fees being part of the legal lease contract.

Edit:

Here's an image capture from the standard type lease agreement, and as can be seen, the late payment fees can be deducted from the deposit.
http://mybroadband.co.za/photos/showphoto.php/photo/12773/size/big/cat/500
 
Last edited:
Frankie said:
+1
Only allows for deductions for damage etc.


True, the lease agreement has a set penalty amount due for each time rent is late (to cover costs such as legal notices and bank charges) and this should be billed as it occurs, but if unpaid by the time the tenant vacates then these outstanding amounts can be deducted from the deposit.
Click to expand...

Well this is good on paper, but to enforce it will cause animosity between both parties.

Json C said:
If this is in the lease agreement then it is still subject to agreement by both parties when the deposit is to be paid back. The same applies if the landlord failed to fullfil certain obligations outlined in the agreement.
Click to expand...

Why should it be subject to agreement if we have both signed an agreement already?
 
AvOk said:
Well this is good on paper, but to enforce it will cause animosity between both parties.
Click to expand...
True, but it could be used as breech of contract if the landlord wanted get rid of a problematic tenant.
Why should it be subject to agreement if we have both signed an agreement already?
Click to expand...
Agreed, it is quite clear in the rental contract.
 
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