You have moved out and handed the flat back in good order. The deposit you paid at the start of the tenancy is still not coming back.
It is frustrating: often it is thousands to tens of thousands of crowns, and it is unclear whether the landlord may keep the money or is simply stalling.
What the landlord may and may not deduct from the deposit
The deposit, which the Civil Code calls a security (jistota), serves the landlord as a safeguard if the tenant owes something or has caused damage. Under Section 2254 of the Civil Code the security together with any contractual penalty agreed in the tenancy agreement must not exceed three times the monthly rent, which does not include advance payments for services.
The landlord may deduct from the deposit:
- unpaid rent,
- outstanding charges for services connected with housing (heat, water, lift, lighting of common areas, waste collection and the like),
- demonstrable costs of repairing damage that goes beyond ordinary wear and tear of the flat.
The deposit is not a penalty for early termination of the tenancy. If the contract contains a term that the deposit is automatically forfeited on earlier departure, that wording does not match the purpose of the deposit under the law. In practice it is problematic.
A contractual penalty counts toward the said cap together with the security, so it cannot be used to get around it.
If the landlord claims that damage arose in the flat, the landlord must prove it. Photographs from the handover work best, or a comparison with the condition on move-in. Ordinary wear and tear, the natural traces of using the flat, cannot be charged to the tenant.
When the landlord must return the deposit
The law is briefer here than one might expect. The landlord returns the deposit when the tenancy ends and deducts from it at once what you owe. In practice that means at the handover of the flat, not sometime later. There is no deadline of the "within thirty days" type in the Civil Code.
The contract may give the landlord some extra time, for example until the service charges statement arrives. That is understandable. It must not cut your rights so far that returning the deposit becomes something you wait half a year for. The law disregards such terms.
If the contract is silent, point to the fact that the tenancy has ended.
The tenant also has a right to interest on the deposit from the moment it was paid until it is returned. At least at the statutory interest rate, even if the contract does not address this expressly. On a longer tenancy this can be a sum that is easy to forget. It is worth mentioning it.
What to do when the landlord does not return the deposit
First prepare the evidence. The handover protocol with the condition of the flat, photographs from the handover, proof that the deposit was paid and all previous communication with the landlord will support the next steps.
Send a written demand. The same rules apply to it as to any complaint. State in it the date the tenancy ended, the amount of the deposit, any interest and a specific date by which you expect the money back. Send the demand in a way that can be proved. Ideally by e-mail with delivery confirmation or by registered post.
If the landlord does not respond or refuses, consider a formal pre-action demand. It is especially appropriate when the informal demand went unanswered. It is also a step you will need in court if you want to claim reimbursement of the costs of the proceedings as well.
If even that does not help, the court route remains. For simpler and undisputed amounts this may be a claim with a motion for a payment order. That is usually faster than ordinary court proceedings. It is always worth weighing the amount owed against the time and effort you put into recovery.
Practical steps, one by one
- Check the handover protocol and photographs of the flat’s condition on move-in and on move-out.
- Check what exactly the contract says about the amount of the deposit, the deadline for its return and interest.
- Calculate the amount owed, including any interest on the deposit.
- Send the landlord a written demand with a specific amount and a return deadline, in a provable way.
- If the demand goes unanswered, consider a formal pre-action demand.
- If even that does not help, consider filing a claim, or a motion for a payment order.
What to do next
Send the demand to the landlord yourself. You draft the pre-action demand yourself, if it comes to that. For more complex tenancy disputes it is worth discussing the matter with an attorney as well.
Legamik is not a law firm and does not provide legal advice. In complex disputes we recommend consulting an attorney.