Although it is useful to require the tenant to pay a security deposit at the time of signing the lease, its amount is limited to two months’ rent if the housing is the tenant’s primary residence and the deadlines for return by the landlord after leaving the premises are strictly regulated.
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The usefulness of the security deposit in furnished rentals
The security deposit, sometimes incorrectly referred to as “guarantee,” is an amount that the tenant pays to the landlord upon entering the premises and which will be returned to them at the end of the contract if they have fulfilled their obligations, notably paying their rent and maintaining the housing and furniture.
If the security deposit is not mandatory, it is important to plan for it in order to protect the landlord against any potential shortcomings of the tenant: rental repairs that they are responsible for but did not complete before leaving, damage to furniture, non-payment of rent, etc.
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Note In the context of a reduced mobility lease, it is prohibited to require the payment of a security deposit.
What is the amount of the security deposit for furnished rentals?
If the housing is the tenant’s primary residence, the amount of the security deposit payable by the landlord is limited to two months’ rent excluding charges, based on a single empty rent. This difference is justified since the security deposit is also used to cover any damage to the furniture and equipment provided with the housing.
The security deposit does not generate interest for the tenant, and the landlord retains it for the entire duration of the lease. Unlike rent, it cannot be indexed or reviewed during the execution of any renewed contract.
Please note that a security deposit cannot be paid when the rent is payable in advance for a period exceeding two months; however, if the tenant requests the benefit of monthly rent payment, the landlord may require the payment of a security deposit.
How long does the landlord have to return the security deposit?
The landlord must return the security deposit to the tenant within a maximum of two months from the handover of the keys, deducting, if necessary, any amounts owed to them or for which they could be held responsible in place of the tenant (water, phone, etc.) as well as the value of damages other than those due to normal wear and tear of the housing or furniture.
The return period is reduced to one month when the exit condition matches the entry condition.
The deadline is assessed from the day the keys are returned by the tenant, who can hand them over to the landlord or their representative (the real estate agent), or by registered letter with acknowledgment of receipt.
In a condominium, the landlord must make a provisional order of accounts and may retain a reserve corresponding to 20% of the amount of the security deposit until the annual accounts of the building are issued. The final adjustment and reimbursement of the balance are made within one month from the final approval of the building accounts. However, the parties may agree to immediately deactivate all accounts.
What happens if the landlord does not return the security deposit within the stipulated timeframe?
If the landlord fails to return the deposit within the prescribed deadlines, they will be required to pay penalties to their tenant. Indeed, the remaining security deposit will be increased by an amount equal to 10% of the monthly rent excluding charges for each month of delay that has begun.
This increase does not apply if the tenant has not provided their new address and this prevents the landlord from returning the security deposit within the time limit.
<pRegarding the amount withheld, the tenant may request proof. The landlord must provide evidence that the deduction is justified. However, they have no obligation to repair or replace the damaged item.
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Tag: the guarantee for housing