Lease Agreements and Deposits in South Africa: The Section 5 Rules (2026)

Two South African laws shape the terms of a residential lease: the Rental Housing Act sets the deposit and inspection rules, and, for an individual tenant, the Consumer Protection Act layers a separate set of contract rules on top of a fixed-term lease. This guide sets out both, plus a change to the law that has been passed but never brought into force.

Information last verified on 23 July 2026. This page provides general legal information about South African housing law and does not constitute legal advice in an individual case.

The Deposit Rules

Section 5(3) of the Rental Housing Act 50 of 1999 sets out a detailed set of deposit rules that apply whenever a landlord takes a deposit from a tenant.

The deposit must earn interest for the tenant. Under section 5(3)(d), the landlord must invest the deposit in an interest-bearing account with a financial institution, at a rate no lower than an ordinary savings account rate, and must give the tenant written proof of the interest earned on request.

Both parties must jointly inspect the dwelling, twice. Section 5(3)(e) requires a joint inspection before the tenant moves in, to record any existing defects or damage. Section 5(3)(f) requires a further joint inspection within three days before the lease expires, to assess the dwelling's condition at the end of the tenancy.

Skipping the outgoing inspection has a real cost for the landlord. Under section 5(3)(j), if the landlord fails to carry out that outgoing inspection with the tenant present, the law deems this an admission that the dwelling is in a good and proper state of repair. The landlord then has no further claim against the tenant and must refund the tenant the full deposit plus interest.

The refund ladder depends on the circumstances. The Act sets three different timeframes, not one:

• 7 days, where nothing is owed to the landlord at all: the deposit plus interest must be refunded in full, with no deductions (section 5(3)(i)).
• 14 days from restoration of the dwelling to the landlord, in the ordinary case where both parties attended the outgoing inspection and some deductions apply: the balance of the deposit plus interest, after those deductions, must be paid over (section 5(3)(g)).
• 21 days after the lease expires, where the tenant did not respond to or attend the landlord's request for an outgoing inspection: the landlord may inspect alone within 7 days of expiry, deduct reasonable repair or key-replacement costs, and must refund the balance within 21 days (sections 5(3)(k) and (l)).

Written Lease on Request

Under the current Act, section 5(2) simply says a landlord must reduce the lease to writing "if requested thereto by a tenant." That means a lease does not have to be in writing by default under South African law today; it becomes a written-lease obligation only once the tenant actually asks for it. If you want a written lease, the right move is to ask for one in writing yourself and keep a record of that request.

Fixed-Term Consumer Leases Under the CPA

Where the tenant is a natural person rather than a company or other juristic person, section 14 of the Consumer Protection Act 68 of 2008 also applies to a fixed-term lease, layering additional rules on top of the Rental Housing Act.

• The tenant can cancel early. Section 14(2)(b) lets the tenant cancel at any time on 20 business days' written notice, though the landlord may impose a reasonable cancellation penalty for cancelling before the fixed term ends.
• The landlord's cancellation right is not the mirror image. Section 14(2)(b)(ii) gives the landlord a cure-period right instead: the landlord may cancel 20 business days after giving written notice of a material breach by the tenant, unless the tenant fixes the breach within that time. It is not a plain no-fault 20 day opt out for the landlord the way it is for the tenant.
• The landlord must give an expiry notice in a defined window. Section 14(2)(c) requires the landlord to notify the tenant in writing between 40 and 80 business days before the fixed term ends, and, if the tenant does not respond, section 14(2)(d) automatically converts the lease to a month-to-month agreement.
• Most fixed-term leases are capped at 24 months. Regulation 5 of the Consumer Protection Act Regulations, 2011 sets a maximum period of 24 months from the date the consumer signs, subject to three exceptions: a longer period the supplier can show gives the consumer a demonstrable financial benefit, a different period set by regulation for a specific type of agreement or industry, or a different period allowed under an approved industry code.
• Section 14 does not apply at all to a juristic person tenant. Section 14(1) expressly excludes transactions between juristic persons, so a company renting premises cannot rely on these consumer protections.

A Law Not Yet in Force

The Rental Housing Amendment Act 35 of 2014 would change several of these rules, most notably by making a written lease compulsory rather than something the tenant has to request. South Africa's own government gazette record for the Act still lists its commencement as "to be proclaimed," meaning it has been passed by Parliament and assented to but has never actually taken legal effect. None of its changes, including mandatory written leases, are current law, and this guide describes the law as it actually stands today rather than as the uncommenced Amendment would change it.

Related Reading

For the free Tribunal that hears deposit disputes if a landlord will not comply with these rules, see the Rental Housing Tribunal. For what happens if a lease dispute escalates toward eviction, see eviction and the PIE Act. For the wider section, see South Africa housing law, and for the full site, South Africa Laws.

This guide is general legal information about South African law and is not legal advice. For advice on your own situation, consult an attorney, or contact Legal Aid South Africa (0800 110 110) if you cannot afford one.