SM
Sibusiso M

1 reviews | Active since Mar 2022

14 Nov 2025, 13:04

******** Withholding of Deposit by iThemba Property Company

I am writing to lodge a formal complaint against iThemba Property Company for the unjust and ******** withholding of my full deposit following the termination of my tenancy. On 25 October 2025, I vacated the property at 164 Main St, City and Suburban, Johannesburg, 2094 in full compliance with the lease agreement. A joint outgoing inspection was conducted on 28 October 2025, during which no damages, outstanding charges, or policy violations were identified. Despite this, iThemba Property Company has refused to refund my deposit of R7035. The company has: Failed to provide any written policy, clause, or legal justification authorizing them to retain the deposit. Breached Section 5(3) of the Rental Housing Act 50 of 1999, which mandates the refund of a deposit within 14 days of lease expiry, unless lawful deductions are substantiated. This conduct constitutes unfair business practice, breach of contract, and potential theft by conversion. I have retained all correspondence, inspection reports, and proof of payment as evidence. I demand: Immediate refund of my full deposit R7035. A written apology for the distress and financial hardship caused. Public disclosure of iThemba’s deposit refund policy—if one exists—to prevent further exploitation of tenants.

Should this matter not be resolved within 7 business days, I will escalate to the Rental Housing Tribunal and Consumer Protection Act authorities and pursue civil damages for inconvenience and legal costs.

HelloPeter, I urge you to flag iThemba Property Company for systemic unfair treatment of tenants. Their refusal to honour basic contractual and statutory obligations erodes trust in the rental sector.

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Replies (2)
Ithemba Property Management
Ithemba Property Management's reply17 Nov 2025, 10:57
Official
Dear Sibusisio
 
Thank you for reaching out to us regarding the matter of your deposit. We appreciate the opportunity to clarify the details for you.
 
Upon reviewing your account, we can confirm that the inspection-related costs did not constitute the majority of the deductions made from your deposit. The primary factor affecting the final amount was the late notice fee, which is app**** when a tenant does not provide a full calendar month’s notice, as required by the signed lease agreement. The relevant clause in your lease states:
5.5. "In the event that the Tenant fails to provide a full calendar Months’ notice of termination as set out above, the Tenant will be liable to pay Rental for the full Month to the Landlord."
 
As outlined above, a full month’s rental amount is charged in instances where adequate notice is not provided to the landlord. This charge was also communicated in the termination notice that was signed electronically.
 
Your deposit was used to cover the outstanding amounts in accordance with Clause 12.2 of your lease agreement, which states:
12.2. "... When this Lease Agreement comes to an end, the Landlord may use the Deposit, together with any interest accumulated thereon, to pay all amounts which the Tenant is liable for in terms of this Lease Agreement, including the reasonable costs of repairing any damage caused to the Premises as contemplated in clause 14.4, the cost of replacing lost keys, any arrear Rental that was not paid by the Tenant and any other outstanding amounts for which the Tenant is liable under this Lease Agreement."
 
Furthermore, a final statement was sent to you which provides a transparent breakdown of all charges, including maintenance costs and breach-of-lease fees, along with the remaining balance of your deposit.
 
We understand that matters relating to deposits can be both stressful and frustrating, and we appreciate the importance of clarity and fairness in these situations. Please rest assured that our intention is always to act in full accordance with the lease agreement and applicable regulations. However, should you feel that any of the actions taken are not aligned with your rights or are in any way ********, you are fully entitled to seek independent advice or pursue any legal avenues you believe are appropriate.
 
Regards
Ithemba Property
SM
Sibusiso M's update24 Nov 2025, 19:03
Reviewer Update

Dear iThemba Property Management,Property: 164 Main St, City and Suburban, Johannesburg, 2094
Tenant: Sibusiso Madonsela
Original lease: 1 March 2024 – 28 February 2025(attached)

Following your ******** withholding of my full deposit and your response citing a "late notice fee" equal to one full month’s rent, I place the following on record and demand immediate remedy:
  • The fixed-term lease expired on 28 February 2025. By accepting March 2025 rent, you consented to a month-to-month periodic lease (RHA s5(5) and CPA s14(2)(d)).
  • I gave written notice on 10 October 2025 and vacated on 31 October 2025 (end of the rental month). Rent for October 2025 was paid in full.
  • While notice was technically 10 days short of a full calendar month, South African law (RHA, CPA, and numerous Rental Housing Tribunal & court rulings) prohibits landlords from enforcing penalty clauses that charge a full extra month. You may only deduct actual proven loss.
  • You have suffered zero loss because:
  1. The property was vacated on the last day of the paid rental month (31 October).
  2. You have provided no evidence that the unit stood vacant for even one day in November, nor any re-letting costs.
  • The attempted deduction, therefore, constitutes an unenforceable penalty and unfair business practice.
  • No valid invoices have ever been provided for the alleged "maintenance/inspection costs".

Within 5 business days, I need solid feedback from email or HelloPeter:Refund the full deposit of R7035. Should you fail to comply, I will on 2 December 2025 lodge an urgent unfair practice application with the Rental Housing Tribunal.
This is your final opportunity to resolve this without formal adjudication.
Yours faithfully
Dr Madonsela
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