Rental deposit

In short: The rental deposit is a security the tenant gives the landlord for possible damage or outstanding payments. It may be three months’ net rent at most.

In more detail: The tenant may pay the deposit in three equal monthly instalments. The landlord must invest it separately from their own assets at a bank, at the usual interest. After moving out and a reasonable review period (usually three to six months), they must repay it with interest.

In Depth

Not legal advice.

• Forms: Savings book, account, guarantee or deposit insurance.
• Review period: The landlord may withhold part if a service charge statement is still pending, but only a reasonable amount.
• Damage: Normal wear and tear may not be deducted.
• Handover protocol: With photos and dates at move-in and move-out it prevents disputes.
• Limitation: The landlord’s claims for damage expire six months after return.

See also: Checking a service charge statement