Security deposit: amount, refund deadlines and permitted deductions

The security deposit is the most debated sum in a lease. It is not much money compared with a Paris property investment, yet it accounts on its own for most end-of-tenancy disputes — because the owner sees it as a reserve for damage, and the tenant sees it as an advance they are owed in full.

In practice, almost every conflict starts in the same place: the landlord withholds a sum they consider legitimate, without being able to justify it beyond dispute. The tenant objects, the discussion turns sour, and a deduction of a few hundred euros ends up costing weeks of tension, sometimes legal proceedings.

This guide covers the four questions that come up every time: how much to ask for, what the sum actually covers, what you can withhold, and how to return it without opening a dispute.

What exactly the security deposit is for

One point deserves to be made up front, because it explains a good share of the misunderstandings: the security deposit is not an advance on rent, and it is not a guarantor arrangement (caution) either. A guarantor, in the legal sense, is a person — a surety — who undertakes to pay if the tenant does not. The security deposit, by contrast, is a sum of money paid when the lease is signed and held by the landlord throughout the tenancy.

Its function is precise: to cover the tenant's failures to meet their contractual obligations at the end of the lease. In concrete terms, three categories:

• Unpaid rent and charges still owed at the time of departure.
• Damage attributable to the tenant, established by comparing the move-in inspection with the move-out inspection.
• Service-charge reconciliations not yet settled, when the annual statement of the co-ownership (condominium) is not yet known at the time of departure.

What it does not cover is just as important: normal wear and tear. A carpet that has aged, paint that has dulled after several years, a worn bathroom sealant are part of the owner's maintenance, not the tenant's responsibility. This is the most contested boundary, and the one that decides the outcome of most disputes.

How much to ask for

The amount of the security deposit is not left to your discretion: it is capped, and the cap depends on the type of lease. The general rule to remember is that an unfurnished rental and a furnished rental are not subject to the same cap, with a furnished rental traditionally allowing you to require more — which makes sense, since the tenant is entrusted with furniture and equipment on top of the walls.

Certain specific leases also follow their own rules. The mobility lease (bail mobilité), in particular, differs markedly from standard leases on this point: it is one of the things to check before choosing this type of contract.

Three habits are worth more than a figure learned by heart:

1. Check the cap that applies to your type of lease when drafting the contract, not by analogy with a previous lease.
2. Calculate it on rent excluding charges. The cap is based on the base rent, not on the total amount called each month.
3. State the amount explicitly in the lease. A deposit collected without a written clause is an unnecessary weakness on the day you need to withhold it.

The return deadline: what triggers it and what extends it

The return follows a simple principle: the clock starts at the handover of the keys, not at the end date of the lease on paper. A tenant who hands back the keys fifteen days early starts the clock at that moment.

The length of the deadline then depends on the outcome of the move-out inspection. Two scenarios shape everything else:

The move-out inspection matches the move-in inspection

No damage is recorded: the return deadline is short, and the landlord must return the entire sum, subject to any rent or charges still owed.

Discrepancies are recorded

The landlord has a longer period to cost out the repairs, obtain quotes or invoices, and return the balance together with supporting documents. This extended period is not a courtesy period: it presupposes that discrepancies have actually been recorded and documented in the move-out inspection report.

A third case, often forgotten, concerns the reconciliation of co-ownership charges: the landlord may temporarily retain a portion of the deposit pending the annual closing of the accounts, with the obligation to settle the balance afterwards.

One point not to overlook: late return is penalized. A deposit returned late gives rise to a surcharge in the tenant's favor, calculated for each month of delay begun. This is the most common reason a good-faith owner ends up paying more than they would have withheld.

What you can withhold — and how to prove it

A deduction is never valid on its own: it is worth what its justification is worth. Three items determine your position.

1. The two inspection reports

This is the key document, by far. Without a detailed move-in inspection, comparison becomes impossible and the property is presumed to have been handed over in good condition. A vague inspection — “good general condition” for six rooms — is not a usable inspection: you need a room-by-room, item-by-item description, ideally supplemented by dated photographs. We describe the method in our guide to the inspection of a furnished rental.

2. Actual costs

A deduction relies on a quote or an invoice, not on a flat-rate estimate. Withholding a round sum “for painting” with no document behind it is the surest way to lose in the event of a challenge.

3. Accounting for wear and age (vétusté)

This is the point most often forgotten, and the one that tips disputes. A damaged item that already had several years of use cannot be re-billed at the price of a new one: you must apply a reduction that takes into account its useful life and its age. Billing a 100% replacement after eight years of occupancy amounts to upgrading the property at the tenant's expense, and a judge will see it that way.

The mistakes that cost the most

• Withholding “as a precaution” while waiting to see. A deduction must be justified at the time it is made, not justified after the fact if the tenant protests.
• Confusing wear and tear with damage. The normal aging of the property is the owner's responsibility; only what is abnormal is attributable to the tenant.
• Doing the move-out inspection alone, after the tenant has left. A joint report, signed by both parties, is worth infinitely more than a one-sided report.
• Forgetting the deadline. The late-return surcharge applies even when the deduction was justified.
• Offsetting an old arrears balance with no audit trail. If you apply rent due, produce the statement of sums called and payments received.

One last point deserves to be stated frankly: the security deposit is very limited protection. It covers a few weeks of rent, no more. Faced with arrears that take hold, it is used up within a few months — which is precisely why the question of guarantees against unpaid rent arises separately, and is not solved by raising the deposit.

A mechanism that rests entirely on your rigor

The security deposit sums up direct rental management rather well: a modest amount, a precise regulatory framework, and a burden of proof that rests entirely on the owner. Nothing insurmountable — provided you keep serious inspection reports, follow the deadlines, and accept giving up a deduction you cannot document. Those who manage their apartment remotely are particularly aware of the weight of this requirement, since it means being present at the right moment, twice per lease.

Key takeaways

1. The amount depends on the type of lease and is calculated on rent excluding charges: check the cap when drafting the contract.
2. The deadline starts at the handover of the keys and is extended only if the move-out inspection reveals discrepancies.
3. An undocumented deduction does not exist. Quote or invoice, allowance for wear and age applied, written statement given to the tenant.
4. Delay costs money. Returning the deposit on time almost always costs less than withholding it for too long.

This article is for information purposes only and does not replace legal advice. Security deposit caps, return deadlines and applicable surcharges vary depending on the type of lease and may change: check the rules in force for your situation, or get professional support, before making any deduction from a security deposit.