A renewal continues the tenancy, so the deposit held under the original lease ordinarily carries forward into the renewal period. There is no need to refund and re-collect it, but the addendum should say so expressly.
Section 5 of the Rental Housing Act 50 of 1999 requires a deposit to be invested in an interest-bearing account with a financial institution, at a rate no lower than that applicable to a savings account. The interest accrues to the tenant, and the tenant is entitled to require the landlord to provide written proof of the interest earned.
Where the rental increases on renewal, agencies commonly ask for a deposit top-up so the deposit stays proportionate. That is a matter of agreement between the parties and must be recorded in the addendum, including when the top-up is payable.
The Act's inspection provisions attach to the beginning and end of the tenancy. Because a renewal continues the tenancy rather than ending it, an outgoing inspection is not triggered by the renewal itself.
Sources
- Rental Housing Act 50 of 1999, s5
- Re-Lease legal template library — renewal addendum
Disclaimer: This is general information about South African lease-renewal procedure, not legal advice. Dates are calculated from the information you provide and from published public holidays. Check them against your lease and take your own legal advice before acting.