The deposit in rental agreements is a recurring stumbling block. By law, it may not exceed two months' base rent (Article 7:266 CC). A clause demanding a higher amount, such as three months or including service charges, is null and void. Clauses that set off the deposit against other debts without express permission are also invalid.
Landlords must repay the deposit within one month after termination of the tenancy, minus justified deductions. Keep receipts from end-of-tenancy inspections to prevent disputes. In case of non-repayment, claim via demand letter and Rent Tribunal. Interest on the deposit (6% per year) is mandatory from day one.
Null and void deposit clauses often lead to lawsuits, with judgments ruling in favour of tenants. Example: a clause blocking the deposit until all housemates leave violates the law. Landlords avoid this by using standard models from the Central Government. Tenants: check upon signing and have excesses struck out. In case of fraud, such as unjustified deductions, claim damages. This way, protect your finances when renting. (197 words)