Lease agreement South Africa: what the Rental Housing Act requires

Quick answer

A South African lease must be in writing if the tenant asks, and must cover rent, deposit, the property, the parties and both sides' obligations. Deposits must be held in an interest-bearing account.

Must-have clauses

• Names and addresses of landlord and tenant
• Description of the property
• Rent amount, escalation and due date
• Deposit amount
• Lease period and notice
• Obligations of both parties
• House rules, if any, attached

Deposits

The deposit is held in an interest-bearing account and refunded with interest within 14 days after the lease ends if there is no damage, or within 21 days after repairs if deductions are made. A joint inspection at the start and end is required.

Consumer Protection Act

For fixed-term leases the tenant can usually cancel on 20 business days' notice, subject to a reasonable cancellation penalty. Fixed terms longer than 24 months need special justification.

Rental income and tax

Rental profit is taxable. Invoice tenants monthly, keep proof of payment and log expenses like rates, levies and repairs — the Starter Kit tracker does this in rand.