Security deposit for a rented apartment

When you move into a rented apartment, the landlord will usually ask you to give a security deposit, which equals one to three months’ rent. The landlord may refuse to pay back the security deposit if you have damaged the apartment, if you have not cleaned it properly when you move out, or some rent is unpaid. The landlord may not refuse to pay back the deposit because of normal wear and tear caused by living in the apartment. 

The purpose of the deposit is to protect the landlord against the risks of renting the apartment.

• The security deposit may not exceed an amount equivalent to three months’ rent.
• The security deposit is usually paid by bank transfer to the landlord’s account or to a separate security account. The security deposit can also be a personal guarantee, or a service provided by a third party for which you pay a monthly fee.

Usually, a security deposit is required before the landlord hands over the keys, and it will only be returned when your lease ends.

When must the security deposit be returned?

The security deposit is not the property of the landlord. It is the responsibility of the landlord to keep the security deposit safe and the landlord cannot use it for his own expenses.

The landlord must return the security deposit without delay and no later than 14 days after the lease has ended. If the landlord has a justified reason preventing the return of the security deposit, it must be returned without delay and no later than 14 days after the reason for the delay has ceased.

If the landlord is late in returning the security deposit, the tenant may claim interest on late payment on the amount to be returned. In some situations, the tenant may also be entitled to compensation.

The tenant may not withhold the final rent payments on the grounds that the landlord holds a security deposit. Rent must be paid as usual until the end of the tenancy.

When may the landlord withhold the security deposit?

The security deposit may be used to cover obligations arising from the tenancy, such as unpaid rent, inadequate final cleaning or damage to the dwelling, unless otherwise agreed in the lease.

• If the landlord does not return all or part of the security deposit, the landlord must notify the tenant without delay and no later than 14 days after the lease has ended.
• If the landlord is prevented from giving the notification for a justified reason, the landlord must give it without delay and no later than 14 days after the reason preventing the notification has ceased to apply.

It is not sufficient for the landlord merely to state that the security deposit is being withheld. The landlord must

• explain why the security deposit is being withheld
• provide a sufficiently detailed explanation regarding the matter.

The account must enable the tenant to assess whether withholding all or part of the security deposit is appropriate and justified. For example:

• If the final cleaning has been done carelessly or the given cleaning instructions have not been followed, the landlord may withhold part of the security deposit to cover cleaning costs. The landlord must explain in sufficient detail what shortcomings were found in the cleanliness and tidiness of the dwelling.
• The landlord must be able to substantiate any claim of abnormal wear and tear or inadequate cleaning. In the event of a dispute, observations based solely on the landlord’s own statement are generally not sufficient evidence.

An apartment will show signs of wear and tear from normal use and the passage of time, for which the tenant is not responsible.

• The landlord cannot require the apartment to be in exactly the same condition at the beginning and end of the tenancy. Normal maintenance needs of the apartment cannot be charged to the tenant.
• If the landlord withholds the security deposit based on the condition of the apartment, the landlord must provide a sufficiently detailed explanation as to why the issue concerns exceptional wear and not ordinary wear and tear.

Read more about the tenant’s obligations and liability