How does deposit work when moving in and vacating, and what should you pay attention to in terms of deposit? Here are 5 tips on deposit.
1. Avoid paying before signing the lease
First tip regarding deposit is that you should not pay before the lease is signed. Thus you avoid being scammed. The landlord disappears sometimes and you will never see your money again.
2. What is the maximum amount the landlord may charge when you move in?
Second tip on deposit is in connection with the move in, and how much a landlord may require from you. This is governed by section 34 (1) of the Danish Rent Act. According to this, the landlord may require what is equivalent to 3 month of rent (exclusive consumption) in deposit. The landlord may also require you to pay 3 months of rent in prepaid rent. Even if you pay 3 months of rent, you still have to pay rent the first month. That means, you may risk paying for 7 months of rent when moving in.
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3. You get prepaid rent back
In connection with your termination period, your prepaid rent will be used to cover your rental expenses. That means, if you have paid 3 months prepaid rent, you do not have to pay rent for the last 3 months of the rental period. The landlord thus deducts the amount paid as prepaid rent for the last 3 months of the rental period.
4. Excess deposit will be refunded
Deposit is the landlord’s security to cover the cost of repairs upon you vacating. This usually entails the cost of paint and wallpaper, but may also include grinding and painting of floors, if this is necessary.
The refund must be made no later than 1-1½ month after the landlord has calculated how much the repair will cost. If the landlord is unfairly long for this, contact DIGURA. We will contact your landlord for you and make them refund your deposit. It is usually enough to only contact the landlord, but if it is no the case, we will take the case to the rent committee for you.
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5. Handle the lease properly
The final tip on deposit is that you should treat the residence as best as possible. The better you treat the residence, the greater the chance that you will get your full deposit back. You can even inspect the residence yourself prior to the vacating inspection and repair the damage yourself. Thus, you can get a greater part of your deposit back.