Whether a tenant receives their full rental deposit and any interest accrued after expiry of a lease term depends on a variety of factors - the most crucial being whether the tenant is deemed to be liable at the exit inspection of the property for any damages or defects caused during his/her tenancy, or if there are any amounts due and owing to the landlord in terms of the lease agreement (unpaid rent, utilities etc.). In both cases, the landlord may apply the deposit and interest towards the payment of all amounts, and refund the balance of the deposit and interest accrued, if any, to the tenant. If there are no amounts owing to the landlord, the tenant must be refunded his/her deposit in full.

But when can a tenant expect to receive their deposit?

This is where the presence of both parties at the joint exit inspection comes in to play. 

If both Landlord/Agent & Tenant are Present at the Joint Exit Inspection:

According to Section 5(3) of the Act, the landlord is required to refund the full rental deposit and interest accrued to the tenant within 7 days of the expiry of the lease should there be no amounts owing to the landlord or costs to repair damages caused by the tenant during tenancy.

If the Tenant is Liable for Damage/Loss caused during the Lease Term:

The landlord is required to refund the rental deposit and interest accrued less the reasonable cost of repairing any damage/loss to the property during the tenant's occupancy, to the tenant no later than 14 days of restoration of the property to the landlord.  The tenant is entitled to request all relevant receipts pertaining to repairs for loss/damages to the property suffered by the landlord.

If the Landlord/Agent is not present at the Exit Inspection:

If the landlord or representative agent is not present at the exit inspection at the mutually convenient and agreed upon time, the property is deemed to be in a “good and proper state of repair” according to Section 5 (3)(f) and may not hold the tenant liable for any loss or damages suffered during the lease term.  The landlord is required to refund the full rental deposit and interest accrued to the tenant within 7 days of the expiry of the lease without deductions.

If the Tenant is not present at the Exit Inspection:

If the tenant fails to respond to the landlord's request for an exit inspection at a mutually convenient and agreed upon time, the landlord must commence the inspection within 7 days of the expiry of the lease to determine if the tenant is liable for any damage to the property during his/her occupation.  The landlord is then required to refund the rental deposit and interest accrued, if any, less the reasonable cost of repairing any damage/loss to the property during the lease term, to the tenant no later than 21 days after the expiration of the lease agreement. 

If the Tenant Absconds without Notice to the Landlord:

If the tenant vacates the property (absconds) before expiration of the lease, without notice to the landlord, the landlord retains all his or her rights arising from the tenant’s breach of the lease agreement.  The landlord is entitled to use the rental deposit and interest accrued for any amounts owing by the tenant as relating to the lease (for example, unpaid rent and utilities) or to repair any damage to the property caused during the tenant’s occupancy.  The landlord must still invite the tenant to a joint exit inspection.  Should the tenant fail to respond to the landlord’s request, the landlord must commence the inspection of the property within 7 days of the expiry of the lease (the date the landlord established that the tenant had vacated).