In the case of an unfurnished rental, this amount is equal to ONE MONTH’s rent, excluding building charges.

In the case of a furnished rental, however, the amount can vary. Generally, it is equal to TWO MONTHS’ rent, often inclusive of building charges. This is because these charges aren’t listed in detail due to the uncertain length of the lease agreement.

The security deposit must be returned to the renter at the end of the lease agreement (plus two months), unless the renter owes any of the following : to return the property to its original condition; any unpaid rent or charges; or the “taxe d’habitation.”

However, the landlord must justify all amounts withheld from this amount either in the form of an estimate to return the property to its original condition, or a completed form from the Trésor Public, etc.

The landlord must return the security deposit to his/her renter within two months of receiving the keys from the renter at the time of the final walk-through inventory. This time lapse is necessary in order to stop the accounting of charges or, if the case arises, to obtain any estimates for the work needed to return the property to its original condition. So that the renter may certify that any withholdings from his security deposit are legal, he/she can consult the list of maintenance charges owed either by the landlord or by the renter. This list is regularly updated.

Revaluation and interest

The security deposit may not be revaluated (i.e. increased) by the landlord during the term of the lease nor when/if the lease agreement is renewed. On the other hand, to compensate for the decrease in value of the security deposit due to inflation and the constraint that it cannot be revaluated (increased), the owner/landlord has the right to earn interest on this sum for the length of the lease agreement.

Restitution of the security deposit - Legal time frame

After the final walk-through inventory between the landlord and the tenant (or baliff) and the tenant has returned the keys to the landlord, the landlord then has two months to return the security deposit (in full or in part) to the tenant. If there isn’t any repair work to be done, any damaged material to be replaced, or any charges, rent, or taxe d’habitation owed, the landlord may on his/her own initiative return the security deposit before the legal deadline.

Conditional extention

This two-month deadline is sometimes too short, notably when the owner/landlord is a cooperative and that it is subject to the managing agent’s time frame to receive the statement/accounting of the building charges. If it does not have at its disposal all of the documentation to put the rental charges in order within the legal time allowed, it is allowed to withhold 20 – 25% of the security deposit until the annual charges have been regulated, as the general assembly which closes the accounts meets only once per year. Back interest If the owner/landlord does not respect the legal time frame or if s/he cannot prove that the regulation could not take place for reasons beyond his/her control, the security deposit which remains due will then earn interest at the legal rate (0.65% in 2010) for the tenant. However, “the legal interests cannot accrue more than the amount of the security deposit (the 20 – 25% withheld until the charge account is closed) counting from the date where it will be possible to close the accounts and not the expiration of the two-month time frame following the return of the keys.”

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