Renting a property often goes hand in hand with paying a security deposit or bond. This deposit provides the landlord with financial certainty in case of damage to the property or if the tenant fails to meet payment obligations. But what happens if the landlord does not refund the deposit? In this blog, we discuss the rights and obligations of both the tenant and landlord, as well as what steps you can take if the deposit is not refunded.
What is a security deposit?
A security deposit is an amount that the tenant pays to the landlord at the start of the lease agreement. The bond serves as a guarantee to the landlord for potential damages to the property or rental arrears. By law, the bond generally may not be more than twice the basic monthly rent, unless otherwise agreed in the lease. The deposit is refunded to the tenant at the end of the rental period, provided there is no damage or rent arrears.
When is the landlord allowed to withhold the deposit?
The landlord has the right to withhold (a part of) the bond if damage has occurred 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 documents any defects or damage. The landlord must also inform the tenant about the reason and amount of the withholding.
Note: If no inventory of the property has been made at the start of the rent, the tenant is presumed to have delivered the property in good condition. This makes it harder for the landlord to claim a withholding of the bond.
What to do if the landlord does not refund the deposit?
If you have returned your rental property neatly and there are no outstanding debts, you have the right to a refund of the deposit. If the landlord does not refund it, you can take the following steps:
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Check the rental agreement Read the lease carefully to see under what conditions the deposit must be refunded. Most lease contracts clearly describe what the landlord’s obligations are in terms of refunding the deposit.
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Request a refund of the deposit by letter Get in touch with the landlord in writing and ask for the deposit refund. Preferably, send a registered letter, so you have proof of the communication. Set a clear deadline for the refund and keep copies of all correspondence.
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Engage the Rent Tribunal If the landlord fails to respond or refuses to refund the deposit, you can lodge a complaint with the Rent Tribunal. The Rent Tribunal can provide binding advice on the refund of the deposit and is a low-threshold way to enforce your rights without having to go to court straight away.
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Legal steps: taking it to court If the Rent Tribunal has not provided a solution, or if you want to start a legal procedure right away, you can go to the magistrate to claim the deposit back. A rental law lawyer can assist you in this procedure and ensure that you are well-prepared with all necessary documents and proof.
The importance of good administration
It’s crucial to keep good records during the rental period. Make sure you have the following documents:
- The lease contract
- Proof of payment of the security deposit
- Correspondence with the landlord about the bond
- Photos of the state of the property at the start and end
These documents can assist you in case of a procedure and ensure you have a stronger position in case of a dispute.
Common problems when claiming the deposit back
Unfortunately, it often happens that landlords try to keep the bond without a valid reason. This could happen, for example, if the landlord claims that there is damage, while it’s just normal wear and tear. In such cases, it is wise to engage a rental law lawyer. A lawyer can advise you on your position and if necessary, take steps to claim back the deposit.
When does the tenant have the right to interest over the bond?
In principle, the landlord is not obliged to pay interest on the bond, unless this is specifically included in the rental agreement. However, it can happen that parties make agreements about this. So always check the lease for such provisions.
How can a rental law lawyer help?
A rental law lawyer can guide you through the legal process and make sure you get what you’re entitled to. The lawyer can assist you in:
- Writing legal letters to the landlord
- Filing a complaint with the Rent Tribunal
- Conducting a court procedure with the magistrate
At Arslan & Arslan Lawyers, we have extensive experience supporting tenants dealing with problems getting the deposit refunded. Our specialists ensure your interests are optimally promoted.
Conclusion: Know your rights
Paying a security deposit is a standard part of renting a property, but it’s important that both tenant and landlord are aware of their rights and obligations. If the landlord does not want to refund the deposit, it is important to act quickly and take the right steps to protect your rights. If you are uncertain about the proper approach or want legal assistance, feel free to contact us, we are here for you.
With our expertise, we will ensure that you get what you are entitled to. Contact us for a no-obligation consultation.
