Renting a flat – what can be deducted from the deposit?

A refundable deposit is common practice when renting a flat. It serves as security for the owner in the event of unforeseen situations that are justified and documented. In this article we will discuss what can be deducted from the deposit, and give practical tips on settling it.

What exactly is a flat deposit?

A deposit is a sum of money collected from the tenant before they move into the flat. It is refundable. This means that once the tenancy agreement has ended and all payments have been settled, the owner is obliged to return the full amount. Its maximum amount depends on the type of agreement concluded. For an occasional tenancy (najem okazjonalny), the Act on the Protection of Tenants' Rights provides that the deposit may be up to six times the rent. Under an ordinary tenancy agreement, by contrast, it may be at most twelve times the rent. In market practice, however, it is most often set at one month's rent. The exact terms concerning the deposit must be clearly set out in the tenancy agreement.

What can be deducted from the deposit?

Under the Act on the Protection of Tenants' Rights, the following can be deducted from the deposit:

• rent arrears - the owner has the right to deduct from the deposit an amount corresponding to the rent arrears together with statutory interest;
• utility charges - if the tenant has not paid for utilities (e.g. electricity, water, gas), the owner may deduct from the deposit an amount equal to those charges;
• the cost of repairing damage - the owner may deduct from the deposit the amount needed to repair damage in the flat that was caused through the tenant's fault and does not result from normal wear and tear. Remember, however, that the owner may not charge the tenant for freshening up the flat, e.g. repainting the walls.
• other charges - the tenancy agreement may specify other charges that can be deducted from the deposit.

The procedure for deductions from the deposit

The owner has 30 days from the day the tenant leaves the flat to return the deposit. During this time they should draw up a handover protocol for the property and inform the tenant of the amount they intend to deduct from the deposit. The letter informing the tenant of the deposit settlement should contain a detailed breakdown of the amounts and the reasons. If the tenant does not agree with the amount of the deduction, they can take the matter to court.

Summary

The deposit is security for the owner of the flat, but it cannot be used to cover the costs of normal wear and tear of the property. The tenant is entitled to the full deposit back if they have fulfilled the obligations set out in the tenancy agreement. Remember to read the document carefully before signing it.

If you are looking for a flat to rent for your family, doing it on your own may prove time-consuming and frustrating. In that case it is worth using the services of an experienced estate agency in Katowice. Get in touch!