Deposits are the subject of many disputes between apartment owners and tenants. Gethome.pl experts remind you of important information about this form of landlord security.
If someone were to prepare a ranking of the aspects of renting that most often cause disputes between tenants and apartment owners, the topic of deposits would certainly rank high. The deposit is still a frequently used security measure for the lessor's interests. However, owners of rental apartments often do not know, for example, that they should return the money to the tenant after indexation. Ignorance is also a problem on the part of tenants (tenants). In connection with the above, experts from the GetHome.pl portal remind us of important facts regarding deposits when renting apartments.
The Tenant Act teaches us how to use a deposit
The previously mentioned lack of knowledge regarding the principles of operation of the deposit results from the fact that the parties to the apartment lease agreement are sometimes unaware of the provisions of the Act on the Protection of Tenants' Rights. It is the above-mentioned act that is crucial in the context of renting residential premises as a legal act that is more detailed than the Civil Code. The Act on the Protection of Tenants' Rights indicates, among other things, that: “The conclusion of a lease agreement may be conditional on the tenant paying a deposit securing the payment of receivables arising from the lease of the premises due to the lessor on the day the premises are vacated (…)” (Article 6(1)).
The judgment of the Supreme Administrative Court of December 3, 2013 (I OSK 2154/13) confirms that paying a deposit may be a necessary condition for renting an apartment. However, the apartment owner should not be completely free to set the level of the required deposit, as statutory limits apply. The maximum deposit is:
- twelve times the monthly rent for a given premises (as of the date of conclusion of the contract) – general limit;
- six times the monthly rent for a given premises – smaller limit for occasional and institutional rental.
Regardless of the type of rental, the deposit is refundable within one month from the date of emptying
premises, of course after any deduction of the flat owner's receivables. The rental option (occasional, institutional or regular) is also irrelevant in the context of the required deposit adjustment.
Deposit indexation – simple and expensive for the owner?
The adjustment of the deposit consists in the fact that the owner of the apartment returns to the tenant an amount equal to the product of the monthly rent applicable on the day of the deposit return and the rent multiple taken when collecting the deposit. In other words, the indexed refund of the deposit takes into account the rent increase that has taken place since the conclusion of the lease agreement. Importantly, indexation cannot be negative in the event of a rent reduction. In such a case, the owner of the apartment returns to the tenant the amount of the deposit that he previously collected (with the possibility of possible deductions – e.g. for damage to the premises).
The deposit may be reduced not only by “M” damage
The subject of deposit indexation is important because only from the indexed amount of the deposit should the apartment owner deduct his rental receivables (current as of the date of vacating the premises). What receivables are we talking about specifically? The most common examples are:
- unpaid rent, as well as compensation for unauthorized use of the premises;
- tenant arrears resulting from fees beyond the landlord's control (for example, bills for water, sewage, energy, gas and waste);
- the lessor's receivables in connection with the consumption of elements of the apartment's technical equipment referred to in Art. 6b section 2 point 4 of the Act on the Protection of Tenants' Rights (example: the equivalent of the technical consumption of a gas cooker at the prices applicable on the settlement date);
- receivables arising as a result of the landlord's replacement work consisting in renovating the premises, as well as carrying out repairs attributable to the tenant;
- compensation for identified, documented and estimated damage to the premises that was caused by the tenant's fault.
GetHome.pl experts point out that the catalog of possible deposit reductions is quite wide. However, there is a common principle. Namely, any reduction should be properly documented in the context of the reasons. Attempts by landlords to use their advantage by unfairly settling deposits should be clearly assessed negatively. Naturally, we must also remember about the “sins” of tenants who sometimes question obvious damage to the apartment. More efficient court procedures would certainly help in eliminating examples of dishonesty – both on the side
both landlords and tenants.
