The deposit, an important part of a rental agreement!
The deposit is usually equal to 1 or 2 months' basic rent. A security deposit of 3 months' bare rent is no longer allowed as of July 2023.
We are often asked whether the deposit can be offset against the last month or 2 months' rent. We advise against this! A deposit may not be set off against the last month's rent because any damages can then no longer be settled at the end of the rental period. However, if any rent arrears have arisen, this may be offset against the deposit.
If the property is left without damages and without any costs to be offset, the landlord must return the deposit within 2 weeks. Before July 2023, this deadline was set at 1 calendar month.
Costs that can be offset against a security deposit are, for example, repair of damages in or to the leased property caused by the tenant, replacement of defective appliances (demonstrably caused by the tenant provided they are not depreciated), repair of minor exterior maintenance or cleaning costs.
To avoid discussions, it is important to draw up an inspection report at the start of a rental period. Already existing damages are mentioned in it so that the tenant cannot be held liable for them when leaving the property. This report also includes photographs to give a good idea of the rented property.
When leaving a property, a tenant must first be given the opportunity to repair any damage himself.
Settlement of gas, water and electricity
If a property is let including an advance payment of gas, water and electricity, meter readings are recorded at the beginning of the rental period. When the tenant leaves, meter readings are taken again so that the tenant's actual consumption can be calculated. If the advance payment has not been sufficient, a landlord may offset the deposit against the extra costs of gas, water and electricity.
Preparing an inspection report is an important part of the rental process. Would you like more information on this? Then get in touch with us.
