Deposit, what's the deal? How much? Who handles it? And will I get it back?

Major Point of Discussion

The amount of the deposit and whether it should be refunded is perhaps the biggest point of dispute between tenant and landlord when vacating a property. It's also a current topic of political debate in The Hague, which aims to establish clear regulations.

What's Going On

Until now, the concept of a deposit has been somewhat vague. It's meant to be a guarantee or insurance for the landlord to ensure the property isn't left in disrepair after the tenant leaves. But how much can a landlord ask for? And how can a tenant be sure the landlord won't just keep the money? From July 1, 2023, it is legally stipulated that a landlord can ask for a maximum of two months' rent as a deposit. HouseScout is pleased that this has finally been established, as it eliminates one major point of dispute.

Future Developments

Another issue being investigated, and hopefully one day legally mandated, is the requirement to place the deposit in a third-party account that neither tenant nor landlord can access freely. HouseScout has already been offering this service for several years. It protects both tenant and landlord, providing peace of mind for both parties.

Potential Issues

It sometimes happens that the deposit is used as the last month's rent, which is not correct. Rent is rent, and deposit is deposit. Rent is the standard payment for living in the space. The deposit is the insurance that you will live there properly and leave the place neat and clean. Since the deposit is equal to several months' rent, the two are sometimes confused. This can be avoided by clearly defining the terms in the rental contract.

Mediator

HouseScout is often asked to mediate between landlord and tenant and handle the check-out and deposit settlement when tenants leave the property. If there is a solid contract and check-in report (read here about the horror when this is missing), I can discuss with the tenant the contractual agreements and what they mean for the deposit's return. Because landlords can be emotionally involved (after all, it's their property and investment), it's often helpful to have a neutral party like HouseScout handle the check-out mediation.

However, I prefer to guide tenants and landlords through the preliminary stages to prevent disputes and stress. I do this not only by preparing the right documentation but also by finding the right match between tenant and landlord (read here how I've been doing this for over 15 years).