Top five ways to protect your rental deposit

Rising interest rates over the past two years have caused a lot of prospective homebuyers to put their plans on hold - and simultaneously created many new tenants who need help to deal with the ins and outs of renting a home, including what happens to the damages deposit they pay at the start of their lease.

This deposit is usually the equivalent of one or two month's rent and is supposed to be held by the property owner, or the owner's agent, in a bank account that earns interest, so that when the tenants' lease ends, the deposit can be repaid to them with interest.

However, the tenants will not be entitled to a full refund of this money if there has been damage done to the property during their tenancy, and therein lies the cause of probably the most common dispute between landlords and tenants.

And of course it is difficult to determine whether the property has or has not been damaged, or is just showing signs of normal wear and tear, without evidence, which is why good landlords, their agents and savvy tenants will always insist on a thorough inspection of the property before they move in. Any existing defects need to be documented and preferably photographed or videoed during this inspection, so they cannot be attributed to the new tenant at a later stage. This list should then be signed by both landlord and tenant and attached to the lease agreement.

This is the first and most basic thing you need to do as a tenant to protect your rental deposit, and even if your landlord or the managing agent doesn't attend an "ingoing" inspection, you should still check the condition of the property and send them a signed list of any defects you have noted, along with photos or videos.

Secondly, of course, you must do your best not to cause any damage, and to leave the property in at least the same condition you found it in when you moved in. If you've put nails in the wall to hang pictures, for example, you should pull them out and patch any holes in the wall. If you've painted any walls an unusual colour, you should repaint back to the original shade. If you've spilled wine on a carpet and can't get the stains out, you should replace it. And of course it is always good to ensure that the home is thoroughly cleaned before you hand it back.

Thirdly, you should read your lease agreement and ensure that you are familiar with all the sections related to the deposit, including the amount to be paid, the account where it will be held and the conditions and time period allowed for its return or retention.

Also important are any clauses regarding the notice procedures you are expected to follow if you want to leave. In most cases you will simply need to give the landlord written notice a month or 60 days before the end of the lease. But if you need to move out before that, you may have to pay a penalty for early termination of the lease, or be prepared for the landlord to retain some or all of your deposit. It is worth noting here that it is illegal in SA to rent a residential property without a written lease - and that tenants should of course avoid any landlord who is not prepared to give them one.

The fourth way to protect your deposit is to communicate with your landlord or the managing agent, in writing, throughout your tenancy. If anything breaks or needs to be replaced, you must report it promptly, ask when the work will be done, and keep a record of all your correspondence. This is vital because something that goes wrong can often cause further damage if it is not quickly attended to. Water from a burst geyser, for example, can result in extensive damage to ceilings, walls and flooring, which your landlords could try to say was your fault if you didn't report the problem immediately.

Then finally, you need to request and attend another property inspection on the day you move out of the property. Once again, you should go through the property with your landlord or the managing, and thoroughly document and photograph its condition. If there are any concerns, now is the time for the landlord or agent to raise them, so that you have the opportunity to make any minor repairs or address anything else that could prevent you from getting your full deposit back.