Security Deposit Settlement After Lease Termination

The security deposit is a financial guarantee held by the landlord for potential damage to the rental property. After lease termination, settlement must take place based on the final inspection protocol. Article 7:237 of Book 7 of the Dutch Civil Code (BW) stipulates that the landlord must refund the deposit within one month of the tenant’s departure, unless damage is established. Deductions are only permitted for tenant-caused damage, not for wear and tear or deferred maintenance. Tenants receive a detailed breakdown of any deductions, supported by invoices. In case of a dispute, the tenant may send a formal demand and initiate legal proceedings if necessary. Interest on the security deposit continues to accrue until disbursement; landlords must account for this. Using a bank guarantee can serve as an alternative to avoid costs. The Rent Tribunal (Huurcommissie) handles complaints regarding unreasonable deductions. Retain all correspondence and protocols. Landlords may not demand a double security deposit. For mid-term lease termination, pro rata rules apply. Transparent settlement maintains good relations and prevents legal escalation. Tenants may claim damages for late refunds. (199 words)