Landlords will be required to pay tenants their deposits plus interest when they leave under the proposed rent law currently before the South African parliament.
Under the Rental Housing Amendment Act, landlords will be required to invest deposits paid by their tenants in an interest bearing account with a financial institution and pay their tenants the interest when they leave.
The chairwoman of the Parliamentary portfolio committee on human settlements, Nomhle Dambuza said her committee was redrafting the bill because it had gaps which could lead to people’s exploitation.
Most tenants are not taking advantage of the rent laws and some even forfeit their deposits for various reasons given by the landlords.
Studies have shown that it is better to rent if one is staying in an area for less than three years. It is better to buy the property if one is staying longer than that.