Rental Arrears Recovery Calculator
Calculate outstanding rent, accrued interest, deposit offset, and the full cost of legal recovery for South African landlords
How to Use This Calculator Arrears • Legal recovery • SA law
Arrears Cost Tab
Enter your monthly rent, the number of unpaid months, the deposit you hold in trust, and any late payment penalty percentage from the lease. The calculator returns the total arrears, interest accrued at the current prime rate plus 3% (13.25%), the deposit offset, and the net amount you are unlikely to recover immediately.
Legal Recovery Tab
Choose between the Rental Housing Tribunal (free, 3–6 months) and High Court (R15k–R40k, faster enforcement). The calculator adds demand letter costs, sheriff fees, eviction application costs, and the rental income lost during the vacancy period to give a total recovery cost.
Compare the total recovery cost against the likelihood of actually recovering the arrears and decide whether pursuing the debt makes financial sense versus writing it off and blacklisting the tenant.
Worked Example
Thabo rents a property in Midrand for R12,000/month. His tenant, Sipho, has not paid for 3 months (total arrears: R36,000). Thabo holds a deposit of R24,000.
At 13.25% interest over 3 months, the interest on arrears is approximately R1,350. With a 10% late fee clause, the gross outstanding is R36,000 + R3,600 + R1,350 = R40,950.
After applying the R24,000 deposit, Thabo's net outstanding is R16,950.
Choosing the Rental Housing Tribunal route (free), plus R1,000 demand letter, R3,500 sheriff fees, and 4 months vacancy at R12,000 = R52,500 total recovery cost vs R36,000 arrears. The calculator recommends blacklisting and writing off the balance.
Frequently Asked Questions
How long does it take to evict a non-paying tenant in South Africa?
The eviction process in South Africa takes a minimum of 3–9 months depending on the route. The Rental Housing Tribunal handles disputes in 3–6 months but can only issue orders — you still need a Magistrate or High Court order for actual eviction under the PIE Act. A direct High Court application typically takes 2–4 months but costs R15,000–R40,000 in legal fees. During this entire period, the property generates no rental income, which is typically the landlord's largest real cost.
Can I deduct arrears from the tenant's deposit in South Africa?
Yes. Under the Rental Housing Act, the deposit can be applied to outstanding rent arrears, damage costs (excluding fair wear-and-tear), and cleaning costs. You must provide the tenant with a written statement of how the deposit was applied within 14 days of lease termination. Any balance must be refunded with the interest earned. Failing to do so within 14 days makes the full deposit immediately repayable.
What is the Rental Housing Tribunal and is it free?
The Rental Housing Tribunal is a free dispute resolution body established under the Rental Housing Act (Section 13). It handles complaints from both landlords and tenants about unfair practices, deposit disputes, and breach of lease. Proceedings are free of charge and informal — you do not need a lawyer. However, its orders are not self-executing and still require court enforcement if the tenant refuses to comply. Processing times range from 3–6 months.
Can I blacklist a tenant who owes me rent?
Yes. You can list a defaulting tenant with TPN Credit Bureau (the leading SA property credit bureau) under the National Credit Act and POPI Act compliance framework. Listing requires a valid lease agreement, documented arrears, and a letter of demand that was sent to the tenant. Blacklisting prevents the tenant from renting from TPN-subscribed landlords in future and may affect their credit score — a strong deterrent even when monetary recovery is unlikely.
What interest rate applies to rental arrears in South Africa?
Interest on rental arrears is typically charged at the prime lending rate plus 3% (currently 13.25%), as specified in standard lease agreements. This rate must be stipulated in the lease — if the lease is silent on interest, the in duplum rule under the NCA limits how much interest can accumulate. Always include an explicit interest clause in your lease agreement.