Rental Bond: Legal Calculation and Refund

The rental bond represents one of the most strictly regulated sums within the framework of a rental agreement. Governed by Law No. 89-462 of 6 July 1989, known as the Mermaz Law, it is nonetheless the subject of numerous disputes between landlords and tenants, particularly upon refund at the end of the tenancy. Understanding the precise rules for calculation, holding and refund is essential to secure the rental relationship and avoid disputes before the departmental conciliation commission or the judge of consumer disputes.

Calculation of the Legal Rental Bond Amount

The rental bond amount is strictly capped by law and depends on the type of rental:

• Unfurnished rental (principal residence): the bond is limited to one month's rent excluding charges, in accordance with article 22 of the Law of 6 July 1989, as amended by the MOLLE Law of 2009.

• Furnished rental (principal residence): since the ALUR Law of 24 March 2014, the bond is capped at two months' rent excluding charges (article 25-6 of the 1989 Law).

• Seasonal rental or mobility lease: no legal cap for seasonal rental; no bond can be required for a mobility lease (article 25-14).

The bond must be paid upon signing the lease and its amount must be expressly stated in the contract. Note: if the rent is payable in advance for a period exceeding two months, no rental bond can be required from the tenant.

Refund Timeframes Following the Exit Condition Report

Bond refund is governed by strict timeframes since the ALUR Law:

• Maximum 1 month if the exit condition report matches the entry condition report;

• Maximum 2 months if damage or shortcomings are found.

These timeframes run from the date the keys are handed over to the landlord or their agent. In a co-ownership building, the landlord may retain a maximum provision of 20% of the bond until the annual settlement of co-ownership accounts, in order to cover any charge adjustments.

In case of delayed refund, the bond is increased by 10% of the monthly rent excluding charges per month of delay, an automatic penalty provided for in article 22 of the 1989 Law.

Authorised Deductions from the Bond

The landlord may only make deductions upon presentation of supporting documents: quotes, invoices, bailiff's reports or photos attached to the condition report. Those notably justifiable include:

• rental repairs not carried out (Decree No. 87-712 of 26 August 1987);

• unpaid rent and charges;

• damage exceeding normal wear and tear;

• charge adjustments.

Wear and tear, defined as normal deterioration over time, can never be charged to the tenant. Since the ALUR Law, landlord and tenant may agree on a wear and tear scale attached to the lease to objectify deductions.

Remedies in Case of Dispute

In case of disagreement, the tenant must first send a formal notice by registered letter with acknowledgement of receipt. Failing an amicable agreement, they may freely refer the matter to the departmental conciliation commission (CDC), then failing that to the judge of consumer disputes of the district court. The claim prescribes after 3 years from the date the refund became due (article 7-1 of the 1989 Law).

Conclusion

Mastering the rental bond regime secures the landlord-tenant relationship. Rigorous documentation (detailed condition report, photos, wear and tear scale, work supporting documents) remains the best protection against disputes and guarantees a refund in compliance with the legal framework.