A security deposit is a sum paid by the tenant to the landlord or the landlord’s representative to guarantee certain obligations under the lease. Its amount is strictly regulated: it is limited to one month’s rent excluding charges for an unfurnished rental used as the tenant’s main residence, and to two months’ rent excluding charges for a furnished rental. No security deposit may be requested under a mobility lease. The deposit is generally paid when the lease agreement is signed and its amount must be stated in the lease. At the end of the tenancy, the landlord must return the security deposit from the date the keys are handed back: the maximum period is one month when the move-out inventory is consistent with the move-in inventory, and two months when discrepancies may justify deductions. The landlord may deduct outstanding rent or charges, unrepaired tenant-responsible maintenance, restoration costs or damage attributable to the tenant, provided that the amounts deducted can be supported by inventory reports, photographs, estimates, invoices or other appropriate documents. Normal wear and tear and the natural ageing of the property, furniture or equipment cannot be charged to the tenant as damage. In certain co-owned buildings, a provision of up to 20% of the security deposit may be retained pending the annual adjustment of service charges. In the event of late repayment, the amount still owed may be increased by 10% of the monthly rent excluding charges for each month of delay begun, except in particular when the delay is attributable to the tenant. In the event of a dispute over deductions or the repayment of the security deposit, the parties may first seek an amicable solution, followed by a formal notice, referral to the Departmental Conciliation Commission and, if necessary, the competent protection litigation judge.
A security deposit is a sum paid by the tenant to the landlord when the lease is signed. It can be used to cover certain amounts still owed at the end of the tenancy, such as unpaid rent or charges, tenant-responsible repairs that have not been carried out, or damage attributable to the tenant.
Its amount is regulated: it may not exceed one month’s rent excluding charges for an unfurnished rental and two months’ rent excluding charges for a furnished rental. No security deposit may be requested under a mobility lease.
At the end of the lease, the landlord must return the security deposit within a maximum period of one or two months from the date the keys are returned, depending on the condition of the property. Deductions are possible, but they must be justified.
In this guide, discover the rules you need to know to set, retain and return a security deposit, as well as the precautions to take to avoid disputes.
| Type of rental | Maximum security deposit | Time limit if the move-out inventory matches the move-in inventory | Time limit if discrepancies are found |
|---|---|---|---|
| Unfurnished rental | 1 month’s rent excluding charges | 1 month | 2 months |
| Furnished rental | 2 months’ rent excluding charges | 1 month | 2 months |
| Mobility lease | No security deposit | / | / |
Key point: the repayment period starts from the date the keys are handed back to the landlord or the landlord’s representative, not simply from the end date of the lease.
A security deposit is a sum of money provided for in the rental agreement and paid by the tenant to the landlord, or to the landlord’s representative, usually when the lease is signed.
It provides security for the landlord if the tenant fails to meet certain obligations. It may notably be used to cover unpaid rent or charges, certain tenant-responsible repairs that have not been carried out, or damage identified when the tenant leaves.
The security deposit is therefore not an amount that automatically belongs to the landlord: at the end of the lease, it must be returned to the tenant after deducting, where applicable, any amounts that may legally be retained and are duly justified.
The terms “security deposit” and “guarantor” are sometimes confused in everyday language. Legally, however, they refer to two different things.
Subject to the applicable rules on guarantees and any other protection already in place, a landlord may therefore have both a security deposit and a guarantor.
The maximum amount allowed depends mainly on the type of lease.
For an unfurnished property used as the tenant’s main residence, the security deposit may not exceed one month’s rent excluding charges.
For example, for a property rented for €1,000 per month plus €100 in charges, the maximum security deposit is €1,000.
The amount must be stated in the rental agreement.
For a furnished rental used as the tenant’s main residence, the landlord may request up to two months’ rent excluding charges as a security deposit.
For a furnished apartment with a monthly rent of €1,200 excluding charges, the security deposit may therefore be as high as €2,400.
This difference compared with an unfurnished rental is notably explained by the furniture and equipment made available to the tenant, which must also be taken into account in the inventory of fixtures and the furniture inventory.
Under a mobility lease, no security deposit may be requested from the tenant.
This prohibition applies regardless of the length of the mobility lease, which may run from one to ten months.
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When the lease provides for a security deposit, it is paid when the rental agreement is signed. Its amount must be expressly stated in the lease.
Payment may notably be made by bank transfer, cheque or cash. If payment is made in cash, the tenant may request a receipt confirming payment.
The amount of the security deposit cannot be increased during the lease or when it is renewed.
Please also note: when rent is payable in advance for a period of at least three months, the landlord cannot require a security deposit.
A furnished rental has one important feature: the property is provided with the furniture and equipment required for the tenant’s everyday life.
This is why the security deposit may amount to two months’ rent excluding charges, compared with only one month for an unfurnished rental.
Beyond the amount of the deposit itself, the accuracy of the inventory of fixtures and the furniture inventory is particularly important in a furnished rental. When the tenant moves in, it is advisable to describe precisely the condition of the property as well as that of the furniture and equipment: bedding, tables, chairs, household appliances, crockery and lighting, for example.
When the tenant leaves, this documentation will make it easier to distinguish damage attributable to the tenant from ordinary wear resulting from the passage of time.
For example, damaged furniture or missing equipment may, under certain conditions and with the necessary supporting documents, justify a deduction. By contrast, the normal ageing of a piece of furniture cannot be charged to the tenant in full.
The inventory of fixtures is one of the most important documents for determining whether a deduction from the security deposit is justified.
It allows the condition of the property when the tenant moves in to be compared precisely with its condition when the tenant leaves.
The move-in inventory should describe the property and its equipment as precisely as possible: walls, floors, ceilings, sanitary facilities, installations, appliances and, in a furnished rental, the furniture provided.
Any defects already present must be recorded.
Dated photographs can also usefully supplement the document and make comparison easier when the tenant leaves.
When the tenant leaves, a new inventory is carried out. Comparing the two documents makes it possible to identify any differences that appeared during the tenancy.
However, not every difference automatically constitutes damage attributable to the tenant.
It is particularly important to distinguish between:
This distinction is essential for determining which amounts may potentially be deducted from the security deposit.
A landlord cannot arbitrarily retain all or part of the security deposit. Every deduction must correspond to an amount genuinely owed by the tenant and must be capable of being justified.
Amounts still owed by the tenant when leaving the property may be deducted from the security deposit. This may include rent, charges or, depending on the circumstances, other amounts due in connection with occupation of the property.
However, the security deposit should not be treated as a reserve intended to replace normal rent payments during the lease.
Damage identified by comparing the move-in and move-out inventories may justify a deduction when it is attributable to the tenant.
This may include, for example, severely damaged flooring or wall coverings, broken equipment, damaged furniture in a furnished rental or tenant-responsible repairs that were not carried out.
By contrast, the landlord cannot require the tenant to pay the cost of restoring an item to new condition when the deterioration is simply the result of the property’s normal ageing.
The tenant is required to maintain the property throughout the tenancy. If the property is returned in a condition requiring cleaning or restoration attributable to the tenant, cleaning costs may, depending on the circumstances, be deducted from the security deposit.
The condition must nevertheless be objectively established, notably through the inventory reports, photographs and supporting documents corresponding to the amounts retained.
A flat-rate cleaning charge applied automatically regardless of the actual condition of the property should therefore be avoided.
The same principle applies: everything depends on the cause of the deterioration.
Paint that has simply faded over time is considered normal wear and tear and cannot be charged as though it were new. By contrast, walls damaged by the tenant may justify restoration work.
The amount deducted must remain proportionate to the repairs required and, where applicable, take account of depreciation and normal wear.
Any deduction must be supported by evidence. Depending on the circumstances, supporting documents may include:
An estimate may therefore serve as supporting evidence: it is not always necessary to wait until the work has actually been completed and an invoice issued in order to justify a deduction.
Wear and tear refers to the natural ageing of a property, its materials or its equipment as a result of time and normal use.
It must not be confused with damage attributable to the tenant.
| Situation | Normal wear and tear | Potentially tenant-attributable damage |
|---|---|---|
| Paint slightly faded over time | ✓ | |
| Wall heavily stained or damaged | ✓ | |
| Floor worn after several years of normal use | ✓ | |
| Burnt or severely damaged floor | ✓ | |
| Furniture ageing normally | ✓ | |
| Furniture broken or damaged through misuse | ✓ | |
| Equipment naturally reaching the end of its useful life | ✓ | |
| Equipment damaged through improper use | ✓ |
To make this distinction easier, the landlord and tenant may agree to use a depreciation schedule that complies with the applicable regulations.
Such a schedule can notably establish a theoretical useful life for the main materials and equipment, together with a depreciation rate linked to the passage of time.
It is particularly useful in preventing a tenant from having to bear the full replacement cost of equipment that was already old when the tenancy began.
Let us take the example of a furnished rental with a security deposit of €2,000.
At the end of the tenancy, the following amounts are identified and justified:
The landlord also observes that the paint in one room has aged, but that this is simply normal wear and tear. The cost of repainting cannot therefore be charged to the tenant as damage.
The total justified deductions therefore amount to €520.
The landlord must return:
€2,000 – €520 = €1,480.
This example illustrates an essential principle: the landlord cannot freely decide how much of the security deposit to retain. Every amount must correspond to a debt, repair or damage that can be justified.
The repayment period depends on the comparison between the move-in and move-out inventories.
When the move-out inventory is consistent with the move-in inventory, the security deposit must be returned within a maximum period of one month.
Amounts genuinely still owed by the tenant may nevertheless be deducted when properly justified.
When the move-out inventory shows differences compared with the move-in inventory that may justify deductions, the maximum period is extended to two months.
The landlord must return the balance of the deposit after deducting any duly justified amounts.
The repayment period does not simply begin on the end date of the lease.
It starts on the day the keys are handed back to the landlord or the landlord’s representative, notably when they are returned in person or in accordance with the procedures provided for by the regulations.
When returning the keys, the tenant must also provide the landlord or the landlord’s representative with their new address.
Yes, in certain circumstances.
When the property is located in a co-owned building and the service charges are subject to annual adjustment, the landlord may retain a provision while waiting for the building’s annual accounts to be finalised.
This provision must be justified and may not exceed 20% of the security deposit.
Once the building’s accounts have been definitively approved, the landlord must carry out the final adjustment and, where applicable, return the remaining balance to the tenant within the applicable period.
Failure to comply with the repayment deadline can be costly for the landlord.
When the security deposit is not returned within the statutory period, the amount still owed to the tenant may be increased by 10% of the monthly rent excluding charges for each month of delay begun.
For example, with monthly rent of €1,000 excluding charges, the increase may amount to €100 for each month of delay begun, in addition to the amount still to be returned.
However, this increase does not apply when the delay is attributable to the tenant, notably if the tenant failed to provide their new address when returning the keys.
Complying with the applicable deadlines and retaining all supporting documents is therefore particularly important for the landlord.
If there is a disagreement over the amount returned or the deductions made, it is advisable to begin by seeking an amicable solution.
The tenant may ask the landlord for a breakdown of the amounts deducted and the corresponding supporting documents. Written exchanges make it possible to keep a record of the steps taken.
If the deposit is not returned within the applicable deadline, a formal notice may be sent to the landlord.
If no agreement is reached, the dispute may then be referred to an appropriate amicable dispute resolution body, notably the Departmental Conciliation Commission (CDC) where the matter falls within its jurisdiction.
If no agreement can be reached, the protection litigation judge may be asked to rule on the dispute. Any legal action seeking repayment of the security deposit must be brought within the applicable statutory time limit.
If the property is sold or transferred during the tenancy, responsibility for returning the security deposit passes to the new owner when the tenant leaves.
Similarly, if the letting agency changes during the lease, the party responsible for returning the deposit at the end of the tenancy must apply the relevant rules.
These changes therefore do not affect the tenant’s right to recover the security deposit owed to them.
Is a security deposit mandatory?
No. French law does not systematically require landlords to request a security deposit. However, when a deposit is provided for, its amount must comply with the statutory limits and be stated in the rental agreement.
What is the maximum security deposit for a furnished rental?
For a furnished lease used as the tenant’s main residence, the security deposit may amount to up to two months’ rent excluding charges.
What is the maximum security deposit for an unfurnished rental?
For an unfurnished rental used as the tenant’s main residence, the security deposit is limited to one month’s rent excluding charges.
Can a security deposit be requested under a mobility lease?
No. A landlord cannot request a security deposit under a mobility lease.
Can the security deposit be used to pay the last month’s rent?
No. The tenant must continue to pay the full rent and charges until the end of the lease. The tenant cannot unilaterally deduct the security deposit from the final month’s rent.
Can a landlord make a deduction from the security deposit without an invoice?
An invoice is not the only acceptable form of evidence. Depending on the nature of the deduction, the landlord may notably provide an estimate, inventory reports, photographs, a report from a commissioner of justice or other documents supporting the amount deducted.
Can cleaning costs be deducted from the security deposit?
A deduction may be considered when the condition in which the property is returned shows a lack of maintenance attributable to the tenant and the corresponding costs are properly justified.
Can the security deposit be used to repaint the property?
Not when repainting is required solely because of normal wear and tear or ageing. However, damage attributable to the tenant may justify a deduction, provided that the damage and the amount charged can be established.
What is the statutory deadline for returning a security deposit?
The maximum period is generally one month when the move-out inventory is consistent with the move-in inventory, and two months when it shows differences that justify deductions. The period starts from the date the keys are handed back.
What penalty applies if the security deposit is returned late?
The amount still owed may be increased by 10% of the monthly rent excluding charges for each month of delay begun, except notably when the delay is attributable to the tenant because the tenant failed to provide their new address.
Does the security deposit have to be held in a separate bank account?
For a standard residential lease governed by the French law of 6 July 1989, the landlord is not required to hold the security deposit in a separate bank account. However, the landlord must still be able to return the amounts owed to the tenant within the applicable deadlines.
How long does the tenant have to claim the security deposit?
In the event of a dispute, the tenant generally has three years from the date on which the security deposit should have been returned to bring the matter before the competent court.
The security deposit is an important form of protection for the landlord, but its effectiveness depends above all on the quality of the documents prepared throughout the tenancy.
A detailed inventory of fixtures, supplemented in a furnished rental by a comprehensive inventory of the furniture, provides objective evidence when the tenant leaves. It is also essential to retain photographs, estimates, invoices and any other supporting documents that may be required if deductions need to be made.
Finally, complying with the repayment deadlines helps avoid penalties and limits the risk of disputes.
For landlords who wish to delegate these steps, Lodgis assists property owners with both letting and property management, from finding a tenant to managing the tenancy and its various stages.
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