Renting an apartment? When the landlord may not return the deposit and how to protect your money

When renting an apartment, Ukrainians often transfer to the owner an amount equivalent to another month of residence – the so-called deposit. However, after eviction, an unpleasant situation may arise: the landlord refuses to return the money in full or withholds part of it.

Does he have this right and what should be provided for in the contract in order not to lose his money?

Deposit and insurance deposit – what is the difference

During the move-in, the owner of the apartment may ask the tenant to pay a security deposit. Usually its amount corresponds to the monthly rent.

Such funds can, in particular, be used as payment for the last month of residence if the tenant suddenly leaves the apartment or does not make the stipulated payment.

An insurance deposit may be provided separately. Its purpose is to compensate for possible damage to the apartment, furniture, household appliances, plumbing or other property.

In this case, the owner may provide for both a security deposit and an insurance deposit, in particular if the apartment has expensive furniture or appliances.

When a tenant risks not getting their money back

If the tenant has violated the agreement, the owner can withhold part or all of the deposit.

Among the possible reasons:

non-payment of rent for the last month;
arrears for utilities;
damage to property caused by the tenant;
refusal to compensate for or repair damaged equipment;
violation of the terms of the contract;
moving out of the apartment without prior notice to the owner as stipulated in the contract.

At the same time, if there are no grounds for withholding money, the deposit must be returned in accordance with the conditions that the parties have determined in the contract.

Verbal agreements are not enough: what to write in the contract

To avoid arguments over money after eviction, the terms of the deposit should be determined before moving in.

It is advisable to clearly record in the contract:

the amount of the deposit;
the term of its return;
specific cases when the owner has the right to withhold funds;
the procedure for compensating for damage;
the period within which the tenant must notify the owner of the move-out.

It is especially important not to leave a wording like “the deposit is returned in the absence of claims” without specifying what circumstances may be the basis for its retention.

It is better to record the condition of the apartment before moving in

If the tenant pays an insurance deposit, it is advisable to add a document to the contract describing the condition of the housing at the time of moving in.

It can record the condition of furniture, appliances, plumbing and other property.

This allows the parties to have confirmation of what damage existed before the tenant moved in, and which could have occurred during the use of the apartment.

It is worth separately providing for the procedure for approving repair costs. The material notes that for this purpose, in particular, a bilateral act on writing off the corresponding amount from the deposit or a notarized agreement can be used.

How not to lose the deposit after eviction

A correctly drawn up contract remains the key protection for both parties. The more detailed the rules for returning and possibly keeping the deposit are, the less room there is for disputes.

Therefore, before transferring the money, it is worth agreeing not only on the amount of the deposit, but also on when exactly it should be returned and under what specific circumstances the owner can keep part of the funds for himself.

Particular attention should be paid to recording the initial condition of the apartment and property – this can become an important argument if, after the end of the lease, the parties do not agree on damages and compensation.