Deposit and prepaid rent are two different financial elements associated with renting a property. Both are typically part of the total move-in cost when you rent a property through BoligPortal.
Both deposit and prepaid rent are costs that you, as a tenant and property seeker, will encounter and need to pay. They are there to protect both your and your landlord's interests during the rental period.
What does deposit mean?
A deposit is an amount of money that you, as a tenant, pay to your landlord before moving into the rental property. The purpose of the deposit is to protect the landlord against any potential damage to the property (beyond normal wear and tear) and to ensure that all financial obligations are met.
When the lease ends, the landlord can use the deposit to cover repairs or outstanding rent if necessary. The deposit is essentially used as security for any damage or deficiencies in the property when the lease ends.
Some landlords also use part of the deposit to restore the property to the condition it was in when the tenant moved in. This can include tasks like painting, sanding floors, and similar work. This will always be specified in your rental contract.
A deposit for a rental property in Denmark can, according to the Tenancy Act, be a maximum of 3 times the rent excluding utilities.
If the rent without utilities is, for example, 5,000 kroner, the landlord may charge a maximum of 15,000 kroner as a deposit.
Prepayment for utility costs, including advance payments for electricity, water, and heating, cannot be charged.
To distinguish between existing damages that were present when you moved in and damages you may have caused, which should be deducted from your deposit, it's important that you report faults and deficiencies to your landlord.
All faults and deficiencies must be reported within 14 days from the takeover date.
Read more about how to report defects and deficiencies to your landlord via BoligPortal here.
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 rental contract.
When the lease ends – that is, when you move out – the landlord will assess the condition of the property and any damages during a move-out inspection. They will also take into account any defects or issues you reported when you moved in.
If there are no damages that need repair, the deposit will usually be refunded to you, minus any costs – for example, if the rental contract agreed on maintenance or repairs.
What does prepaid rent mean?
Prepaid rent refers to an amount that you, as a tenant, typically pay to the landlord as part of the total move-in cost. Prepaid rent covers the last months' rent.
Prepaid rent is not the same as the first month's rent.
Prepaid rent provides your landlord with security that they will receive payment even if you don't pay rent during the rental period or if you move out of the property suddenly without the landlord having time to find a new tenant.
Prepaid rent for a rental property in Denmark, according to the Tenancy Act, can be a maximum of 3 times the rent excluding utilities.
If the rent is, for example, 5,000 kroner without utilities, the landlord can charge a maximum of 15,000 kroner in prepaid rent.
It is not allowed to charge prepaid utility costs, including advance payments for electricity, water, and heating.
If you have paid prepaid rent when moving in, this amount will be deducted from your rent payments for the last months you live in the property. For example, if you have paid prepaid rent for 3 months, you will not have to pay rent for the last 3 months before you move out.
Therefore, you will not receive your prepaid rent back when you move out, as you would potentially with your deposit, but instead, the amount will be deducted from your rent.
If you have not paid prepaid rent, it means you will need to pay rent as usual until the day you move out.
Do you need help?
If you need help with the payment or refund of a deposit or prepaid rent, you should contact your landlord directly. If you experience problems with your landlord regarding these matters, we recommend that you contact Danske Lejere or another organization with legal knowledge and expertise about your rights as a tenant.
At BoligPortal, we are unfortunately unable to assist with or advise on legal disputes or cases between tenants and landlords.