The Deposit in Renting a House: Your Rights as a Tenant

Renting a house often goes hand in hand with paying a deposit. This deposit provides the landlord with financial security in case of damage to the house or if the tenant does not meet the payment obligations. But what happens if the landlord does not repay the deposit? In this blog we discuss the rights and obligations of both the tenant and the landlord, and what steps you can take if the deposit is not repaid.

What is a deposit?

A deposit is an amount that the tenant pays to the landlord at the start of the rental agreement. The deposit serves as a guarantee for the landlord for any damage to the house or rent arrears. Legally, the deposit is usually not allowed to be higher than two times the net monthly rent, unless otherwise agreed in the lease agreement.

What are the legal rules concerning the height of the deposit since July 1, 2023?

Since July 1, 2023, the rules for the amount of the deposit have been tightened. According to the new legislation, the landlord may not ask for a deposit that is higher than twice the net monthly rent. This provision is laid down in the Good Landlordship Act, with which the government wants to offer tenants extra protection against excessively high deposits.

If the deposit exceeds this limit, the landlord is acting in violation of the law. It is therefore important to always check the amount stated in your lease and, if necessary, to object to it. The deposit is refunded to the tenant at the end of the rental period, provided there is no damage or rent arrears.

How long does the landlord have to repay the deposit?

After terminating the lease, you naturally want to see your deposit back as soon as possible. In most cases, the landlord must repay the deposit within 14 days after the end of the lease. This is the case when there is no damage to the house and you have no rent arrears.

However, if damage needs to be settled or if there are still outstanding rent or costs, the landlord may wait a little longer to repay. In that situation, the landlord has a maximum of 30 days to deposit the deposit, after deducting the necessary costs, back to you.

It is therefore important to do a good final inspection with the landlord after the end of the lease and to make any agreements in writing, so that you quickly have clarity about the repayment of your deposit.

Within what period must the deposit be repaid?

According to the latest legislation, the landlord must usually repay the deposit to the tenant within 14 days after the end of the lease. If there is damage to the house or outstanding payments, a maximum term of 30 days applies. In that case, the landlord is allowed to settle the costs with the deposit, but the rest of the amount should still be transferred to the tenant within this period.

In short, you are entitled to a rapid settlement, as long as everything around the rent has been properly handled.

When can the landlord withhold the deposit?

The landlord has the right to withhold (part of) the deposit if there is damage to the property that the tenant must compensate, or if the tenant still has outstanding rent or other costs. This must be clearly demonstrated. Therefore, it is essential that the landlord carries out a final inspection and records any defects or damage.

Can the tenant repair defects himself?

At the end of the rental period, an inspection is usually carried out, during which any defects in the property are recorded. Important to know: if defects are found for which you as a tenant are responsible, the landlord must always give you the opportunity to repair them yourself.

If you take this opportunity and repair the defects properly, the landlord may no longer withhold anything from the deposit for these items. If you fail to repair, the landlord has the right to have the work carried out by a third party and to offset the costs of this with the deposit. Note: if the landlord does not give you a fair chance to fix it yourself, in principle he can only deduct the material costs and not the labor wages of a handyman, for example.

The landlord must also inform the tenant about the reason and the amount of the deduction. The landlord must also inform the tenant about the reason and the amount of the deduction.

Please note: If no condition report of the property was made at the beginning of the rent, the tenant is assumed to have delivered the property in good condition. This makes it harder for the landlord to claim a deduction from the deposit.

The role of the condition report at the start of the rent

In many cases, a so-called condition report is drawn up when entering into a lease agreement. This accurately describes the condition of the house or rented property at the start of the lease period. Often photos are also taken and added to the condition report, so that both tenant and landlord can exactly see how the situation was at the start.

This condition report is of great importance at the end of the lease. In principle, the house must be delivered in the same condition as it was according to the condition report, excluding normal wear and tear.

No condition report? Burden of proof with the landlord

If no condition report was made at the beginning of the lease, the burden of proof lies with the landlord. He must then demonstrate that the house is in a worse condition at the end of the rent than at the beginning. In practice, this is very difficult without a condition report or photos. In such cases, the tenant almost always has a right to a full refund of the deposit, unless the landlord can provide convincing proof of damage in another way.

What to do if the landlord does not repay the deposit?

If you have delivered your rental house neatly and there are no outstanding debts, then you are entitled to a refund of the deposit. If the landlord does not repay this, you can take the following steps:

1. Check the rental agreement Carefully read the rental agreement to see under what conditions the deposit must be refunded. Most rental agreements clearly describe the landlord’s obligations regarding the refund of the deposit.
2. Ask for a refund of the deposit in writing Contact the landlord in writing and ask for the refund of the deposit. Preferably send a registered letter, so you have proof of communication. Give a clear deadline for the refund and keep copies of all correspondence.

What is a default notice and when do you use it?

If the landlord has still not repaid the deposit after your written request, the next step is to send a default notice. This is an official letter in which you ask the landlord again to pay the outstanding amount within a reasonable period—often fourteen days. In the default notice, you clearly state that if the landlord does not pay on time, you will take further actions, such as calling in the Rent Commission or taking legal action.

A default notice is important because it formally establishes that you have given the landlord the opportunity to still meet his obligations. This makes you stronger if you ultimately have to start a procedure to get your deposit back.
3. Call in the Rent Commission If the landlord does not respond or refuses to repay the deposit, you can file a complaint with the Rent Commission. The Rent Commission can give a binding opinion on the refund of the deposit and is an easy way to enforce your rights without immediately going to court.
4. Legal steps: the way to court Did the Rent Commission not provide a solution, or do you want to start a legal procedure immediately? Then you can go to the subdistrict court to reclaim the deposit. A rent law attorney can assist you in this procedure and ensure that you are well prepared with all the necessary documents and evidence.

The importance of good administration

It is crucial to keep a good administration during the rental period. Make sure you have the following documents:

• The lease agreement
• Proof of payment of the deposit
• Correspondence with the landlord about the deposit
• Photos of the condition of the house at the start and at departure

These documents can help you in any procedure and ensure that you are in a stronger position if a dispute arises.

Common problems with reclaiming the deposit

Unfortunately, it often happens that landlords try to withhold the deposit without there being a valid reason. This can happen, for example, if the landlord claims that there is damage while there are normal traces of use.

What falls under normal traces of use?

There is no strict legal definition of traces of use, which often leads to discussion. In general, normal wear and tear due to careful use of the house falls under traces of use. Think of light scratches in the floor or small holes where paintings have hung. These kinds of traces are inevitable when living in a house and should not be counted as damage.

Examples of not traces of use (so damage):

• Burn marks on the countertop because hot pans have been put directly on it.
• Materials affected by the use of aggressive cleaning agents that have damaged the bathroom, for example.
• Deep scratches or dents in the floor that could have been prevented by placing felt pads under furniture.
• Large holes in the walls that have not been repaired.

Examples of trace of use:

• Small scratches or dents in the floor from normal use.
• Light discoloration on the wall or floor caused by sunlight.

Pay attention: self-inflicted damage, such as large holes in the wall or serious damage to materials, does not fall under traces of use and can therefore be rightfully reclaimed on the deposit by the landlord.

By taking pictures of the state of the house in advance, both when moving in and when leaving, you can prevent or support any discussions on this matter. In such cases, it is wise to hire a rent law attorney. An attorney can advise you on your position and take steps if necessary to reclaim the deposit.

When does the tenant have a right to interest on the deposit?

In principle, the landlord is not obliged to pay interest on the deposit, unless this is specifically stated in the lease. However, it may happen that parties make agreements about this. Therefore, always check the lease agreement for such provisions.

How can a rent law attorney help?

A rent law attorney can guide you through the legal process and ensure that you get what you are entitled to. The attorney can assist you in:

• Drafting legal letters to the landlord
• Filing a complaint with the Rent Commission
• Conducting a legal procedure at the subdistrict court

At Arslan & Arslan Lawyers, we have extensive experience in assisting tenants who encounter problems with the repayment of the deposit. Our specialists ensure that your interests are optimally represented.

Conclusion: Know your rights

Paying a deposit is a standard part of renting a house, but it is important that both tenant and landlord are aware of their rights and obligations. If the landlord does not want to repay the deposit, it is important to act quickly and take the right steps to protect your rights. Are you unsure about the right approach or do you want legal assistance? Then contact us, we are here for you.

With our expertise, we ensure that you get what you are entitled to. Contact us for a non-obligatory advice conversation.