Rental deposit: legal calculation and refund

The rental deposit is one of the sums most strictly regulated under a rental agreement. Governed by law no. 89-462 of 6 July 1989, known as the Mermaz law, it is nevertheless the subject of numerous disputes between landlords and tenants, particularly when it comes to refund at the end of the tenancy. Understanding the precise rules for calculation, retention and refund is essential to secure the rental relationship and avoid disputes before the departmental conciliation commission or the judge of the protection tribunal.

Calculation of the legal amount of the rental deposit

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

• Unfurnished rental (principal residence): the deposit 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 deposit is capped at two months' rent excluding charges (article 25-6 of the 1989 law).

• Seasonal or mobility rental: no legal cap for seasonal rental; no deposit may be required for a mobility tenancy (article 25-14).

The deposit must be paid upon signature of the agreement and its amount must be expressly stated in the contract. Note: if rent is payable in advance for a period exceeding two months, no rental deposit may be required from the tenant.

Refund periods after the inventory of fixtures

Refund of the deposit is governed by strict deadlines under the ALUR law:

• 1 month maximum if the exit inventory matches the entry inventory;

• 2 months maximum if damage or failure to comply is found.

These periods run from the date the keys are handed over to the landlord or their representative. In a leasehold building, the landlord may retain a provision of 20% maximum of the deposit until the annual settlement of the leasehold accounts, in order to settle any charge adjustments.

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

Authorised deductions from the deposit

The landlord may only make deductions on presentation of supporting documents: quotes, invoices, bailiff's reports or photographs attached to the inventory of fixtures. These notably 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. Under the ALUR law, landlord and tenant may agree on a wear and tear schedule attached to the agreement to objectify deductions.

Remedies in case of dispute

In case of disagreement, the tenant must first send a formal notice by registered letter with return receipt requested. Failing an amicable agreement, they may free of charge refer the matter to the departmental conciliation commission (CDC), and failing that to the judge of the protection tribunal of the district court. The claim prescribes after 3 years from the date the refund becomes due (article 7-1 of the 1989 law).

Conclusion

Mastering the rules governing the rental deposit secures the landlord-tenant relationship. Rigorous documentation (detailed inventory of fixtures, photographs, wear and tear schedule, work invoices) remains the best protection against disputes and ensures a refund compliant with the legal framework.