Handling the tenants deposit

The (RHA) Rental Housing Act regulates the treatment of the tenant's deposit.

The deposit must be invested in an interest-bearing bank account and all interest earned during the lease period belongs to the tenant. The tenant may at any time during the lease period request that the landlord provide written proof of the deposit invested and the interest earned thereon, and the landlord is obligated to provide such proof.

The tenant may at any time during the lease period request that the landlord provide written proof of the deposit invested and the interest earned thereon, and the landlord is obligated to provide such proof.

The deposit belongs to the tenant up to the point that the tenant owes you any money in terms of the lease agreement. The details of the deposit, including the amount of the deposit and how it will be treated, must be contained in the lease agreement. If not, you cannot deduct any money owed to you by the tenant from the deposit!

The landlord determines the size of the deposit. An acceptable industry standard is a deposit of one month's rent for an unfurnished property and two months' rent for a furnished property.

The deposit can be increased to offset any other risk that the landlord deems likely. However, you shouldn't limit your chances of renting your property by asking prospective tenants for an unreasonably large deposit.