When can you withhold the rental deposit: a complete step-by-step guide

At the end of a rental contract, the rental deposit is released. However, this does not always go smoothly, especially when you as a landlord want to withhold (part of) the rental deposit. We explain when you can do this and how best to approach it.

Your tenants let you know they want to terminate their rental contract and find a new place. For you as a landlord, that means a lot of stress. The first thing that comes to mind is probably the search for new tenants. But do not forget that you first need to close the chapter with your old tenants before you can start a new one. An important part of this is the outgoing property condition report and the release or withholding of the rental deposit.

When can you withhold the rental deposit?

The first question is of course whether you may withhold the rental deposit. The short answer is: yes, you may. As landlord, you decide what happens to the rental deposit. You can even demand additional compensation from the tenant if the deposit does not cover the damage.

Whether or not to withhold the deposit is always determined on the basis of the property condition report. You may not, for example, charge the tenant for a crack in the wall that was already there when they moved in. That is why clear visual documentation is important, both at the incoming and outgoing condition reports. Based on the two reports, you can quickly see whether there is damage and where it is located.

How much of the rental deposit may you withhold?

You compare the condition reports and notice that there is indeed damage for which the tenant is liable. How do you now determine how much of the rental deposit to withhold? Again, the short answer: the amount you withhold must correspond to the damage.

However, this is less straightforward than you might think. Is one strip of parquet damaged? Then you may not charge the tenant for an entirely new floor. With a parquet floor, a single strip can easily be replaced. Is part of the vinyl flooring damaged? Then in theory you may charge the tenant for an entirely new floor. That type of flooring must be replaced in its entirety.

Depending on how old your property is and what has been damaged, you may end up in another tricky situation. If the stove needs to be replaced but the same model is no longer manufactured, which amount do you charge: the cost of the original or the new stove? We recommend taking the cost of the original stove or the price of a similar new model. The latter applies especially if you paid for the original in Belgian francs.

What you may not do, finally, is charge the tenant extra for new materials that cost more. Do you want to replace the floor with a more luxurious covering? Then that price difference is at your own expense. You may, however, request additional compensation if the deposit is insufficient to cover the damage.

Withholding the deposit: discussing it with the tenant

You decide what happens to the deposit, but that does not mean the tenant will agree. When you want to withhold (part of) the deposit, it is important to discuss this properly with the tenant(s). As landlord, you do not have the final say if no agreement is reached. We end this article with three tips.

1. Allow sufficient time for the outgoing property condition report

The outgoing property condition report is the moment when you determine whether you will withhold part of the deposit. Take your time for this so you do not overlook anything. Look carefully in all built-in cupboards, turn on the lights everywhere, check that all appliances still work. Take photos of all damage and mark the differences compared to the incoming condition report. Here you can already gauge the initial reaction of the tenant(s). Do they themselves acknowledge certain damage or do they try to finish as quickly as possible? Based on this, you can estimate how difficult the conversation about the deposit will be.

Important: once you have both signed and the deposit has been released, you cannot withhold any additional amounts. A thorough property condition report is therefore essential.

2. Support the cost with purchase invoices or alternatives

In the conversation about withholding the deposit, it is important that you as landlord stand on firm ground. A well-prepared landlord is worth two. So look up the purchase invoices for the relevant installations and materials. If you manage your rental through SNDQ, you can link those invoices to the property so you quickly have all costs together. Also look as concretely as possible at how much it would cost to repair the damage. Does the repair need to be carried out by a third party such as an electrician? Then request a quote. Does an appliance need to be replaced with a new model because the old one is no longer manufactured? Then check in advance which model you need to purchase. That way you can cut short discussions with the tenant immediately.

3. Avoid legal proceedings

Do you fail to reach an agreement with the tenant(s)? Then there is often no alternative but legal proceedings with the associated price tag. When that procedure costs you more than the amount of the deposit you want to withhold, you will ultimately have to use your own funds for the repairs. Try to avoid this at all times. Stay calm during the discussion with the tenant and look for a compromise if necessary. When you decide, for example, to cover 25% of the damage yourself, you lose less than if the case were to go to court.