No. You pay a deposit once the landlord accepts your application and the lease is signed, never to hold a unit. Here is what the law says and what to pay.
Rental Housing Act 50 of 1999, section 5(3)
The question comes up every week. A tenant finds a flat they like, someone asks for money, and they want to know whether to pay before anything is signed. The answer is no, and the reasons are worth knowing.
In short
- The deposit belongs with a signed lease, never before it.
- Never pay to hold a property or to secure a viewing.
- Your deposit earns interest, and the interest is yours.
- Inspect the property with the landlord before you move in.
What the Rental Housing Act says about a deposit
The Rental Housing Act 50 of 1999 says a landlord may require a tenant to pay a deposit before moving into the dwelling (section 5(3)(c)). It says nothing about paying a deposit to secure a viewing or to hold a unit while you decide. A deposit is security for the lease, so it belongs with a signed lease.
The same section says the deposit must be invested in an interest bearing account, at no less than that bank’s savings rate, and the interest is yours. You can ask for written proof of the interest at any time during the lease (section 5(3)(d)). Before you move in, you and the landlord must inspect the property together and record any defects (section 5(3)(e)).
The Act also says a lease need not be in writing, but the landlord must put it in writing if you ask (sections 5(1) and 5(2)). Ask. A written lease and a signed ingoing inspection are what protect your deposit. Our guide to the Rental Housing Act covers the rest of the Act.
Should you pay a deposit before signing the lease?
No. Never pay a deposit before signing the lease, and never pay to hold a property. If someone wants money before you have seen the property, before your application is accepted, or before there is a lease to sign, walk away. That is how most rental scams work: an advert that looks too good, a rush to decide, and a request for a deposit to “secure” the unit.
A genuine agent vets you first. That takes a few days, and the only money that changes hands is the credit check fee.
What you pay, and when, with The Property Bureau
| When | What you pay |
|---|---|
| With your application | The credit check fee, R150 per applicant, non refundable |
| Once the landlord accepts your application and the lease is signed | The deposit, as set out in the lease and typically 1.5 months’ rent; one month’s rent in advance; the R1000 lease fee; the R500 incoming inspection fee; the first R95 monthly admin fee; and pro rata rent if you move in part way through a month |
Everything is paid into our trust account, never to a person, and you get a receipt. Your deposit is then held in an interest bearing account for the length of the lease. The full list is on our tenants page, and how we keep deposits safe is in our FAQ.
Getting your deposit back
-
Nothing owed: 7 daysThe deposit and interest must be refunded within 7 days of the lease ending, without any deduction (section 5(3)(i)).
-
Repairs deducted: 14 daysThe balance is due within 14 days of the property being handed back, and the landlord must show you the receipts (section 5(3)(g) and (h)).
-
You missed the outgoing inspection: 21 daysThe landlord inspects alone and refunds the balance within 21 days of the lease ending (section 5(3)(k) to (m)).
For the full picture, read our guides to deposit rights in South Africa and the lease agreement.
For landlords
Taking a deposit before the lease is signed causes trouble on both sides. If the tenant walks away, you are holding money you have no clear right to keep. We collect the deposit only against a signed lease, hold it in an interest bearing account, and handle the inspections the Act requires. See how our Cape Town property management works, or our landlord services.
That is the rule in one line: application first, lease signed, then the deposit.
Frequently asked questions
Is it legal for a landlord to ask for a deposit before signing the lease?
The Act allows a deposit to be required before you move in. It does not require you to pay before there is a lease. Paying before signing leaves you with nothing in writing about what the money is for, so do not do it.
Should I pay a deposit to hold a property?
No. A request to pay to hold or secure a unit, especially before a viewing, is the most common sign of a rental scam. A genuine agent accepts your application first and asks for the deposit against a signed lease.
Does my deposit earn interest?
Yes. The landlord must invest it in an interest bearing account at no less than the bank’s savings rate, and the interest is paid to you with the deposit. You can ask for written proof of the interest during the lease.
How long does a landlord have to return my deposit?
7 days if nothing is owed, 14 days after you hand the property back if repairs are deducted, and 21 days if you did not attend the outgoing inspection.
Own a rental in Cape Town?
Find out what it should earn and how it would be looked after. Ask for a free rental valuation, or read how our property management in Cape Town works.
WhatsApp +27 65 847 5310 | Office 021 797 8850
The Property Bureau. Boutique letting, management and sales in Cape Town since 2007. PPRA registered.
Sources: Rental Housing Act 50 of 1999, section 5, as amended by the Rental Housing Amendment Act 43 of 2007, saflii.org. Checked 03.11.2026. This article is general information, not legal advice. Reviewed November 2026.
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