Deposit and pre-paid rent are two different financial elements related to renting a property. Both are typically part of the total move-in cost when you rent a property through BoligPortal.
Deposit and pre-paid rent are things you, as a tenant, will encounter and have to pay. They are in place to protect the interests of both you and your landlord during the rental period.
In this article, you'll find out what deposit and pre-paid rent are, and why they contribute to ensuring security while you live in your rental property. You will always be able to find the specific agreements, conditions, and amounts related to your deposit and pre-paid rent in your rental contract.
What is a security deposit, and what does it cover?
A security deposit is an amount that you, as a tenant, pay to your landlord before moving into the rental property. The purpose of the security deposit is to protect the landlord against any damages to the rental property (beyond normal wear and tear) and to ensure that all financial obligations are met.
When the lease is terminated, the landlord can use the security deposit to cover repairs or outstanding rent if necessary. In other words, a security deposit is used as security against any damages or deficiencies in the property at the end of the lease.
Some landlords also use part of the security deposit to refurbish the property so that it appears in the same condition as when the tenant moved in. This can include painting, floor refinishing, and similar work. This will always be specified in your lease agreement.
How much can the landlord take as a deposit?
According to Danish tenancy law, a deposit for a rental property can at most be 3 times the rent exclusive of utilities.
How do I ensure that I don't pay for damages that were present at the time of moving in?
To distinguish between pre-existing damages that were present at the time of moving in and damages you might have caused during your lease, which could be deducted from your deposit, it's crucial that you report any issues to your landlord. This should be done within 14 days of taking over the lease.
Do I get my security deposit back when I move out?
Whether you get your deposit back when you move out depends on the condition of the property and the agreements you and the landlord have made in the lease agreement.
When the lease ends, which is when you vacate the property, the landlord assesses the condition of the property and any damages during a move-out inspection. This inspection also considers any issues you reported when you moved in.
If there are no damages that need to be repaired, the deposit is typically refunded to you, minus any agreed-upon expenses, such as restoration costs specified in your lease agreement.
What is prepaid rent, and what does it cover?
Prepaid rent refers to an amount that a tenant typically pays to the landlord as part of the total move-in cost. Prepaid rent covers the last month's rent. Therefore, prepaid rent is not the same as the first month's rent. It provides the landlord with security that they will receive payment, even if you don't pay rent during the lease period or if you vacate the rental suddenly without allowing the landlord enough time to find a new tenant.
How much may my landlord charge in prepaid rent?
It is up to the landlord to decide how many months' rent should be charged in advance before moving in. However, a maximum of 3 months' prepaid rent can be charged.
Do I get my prepaid rent back when I move out?
If you have paid prepaid rent when you move in, this amount will be offset against the rent for the last months you live in the property. For example, if you have paid prepaid rent equivalent to 3 months, you will not have to pay rent for the last 3 months before you move out.
Therefore, you will not receive a refund of your prepaid rent when you move out, as with your deposit, but instead, the amount will be deducted from your rent.
If you have not paid prepaid rent, it means that you will have to pay rent as usual until the day you move out.
Have questions regarding your deposit or prepaid rent?
If you need assistance with the payment or refund of your deposit or prepaid rent, please contact your landlord directly. If you encounter any issues with your landlord regarding these matters, we recommend contacting Danske Lejere (legal help for Danish tenants) or another organization with legal expertise and knowledge about your rights as a tenant.