According to Article 36 of the Spanish Urban Leases Act (LAU), “It shall be mandatory to require and provide a cash deposit equivalent to one month’s rent upon the conclusion of the contract.”
The landlord must return the deposit within a month after the contract ends and the keys are handed over. But can you lose this money? What are the circumstances under which the landlord might not return the rental deposit?
5 Reasons Why Your Rental Deposit Might Not Be Returned
If everything is in order and the terms of the contract have been respected, you should receive the deposit back without any issues. In fact, according to Article 36.4 of the LAU, “The balance of the cash deposit to be returned to the tenant at the end of the lease will accrue legal interest, after one month from the return of the keys without the deposit being returned.” This means that if the landlord takes more than a month to return it, you can claim interest.
However, if there are unpaid rents or damages, the landlord might keep this money to cover these costs. Let’s look at the situations commonly reflected in rental agreements:
1. Damages to the Rented Property
The most common reason for not getting the deposit back is damage to the property. If something is broken, like furniture, blinds, or appliances, any damage that did not exist before the rental agreement could cause the loss of the deposit. If repairing the damage incurs a cost to the landlord, it’s likely they will decide not to return the deposit, citing a justified reason.
Therefore, it is highly advisable that the rental contract includes a clause detailing the state of the property before rental, including a photographic inventory showing the condition of the contents (furniture, appliances, paint, etc.). When the rental period ends, the first thing that happens is the inspection of the property. The claim for damages is based on Articles 1555 and 1556 of the Civil Code. It is recommended that during the handover of the keys, a joint inspection is carried out to ensure everything is in order. Additionally, it’s advisable to take photos or videos of the property’s condition by both parties.
2. Unauthorised Modifications
Making changes to the property without the landlord’s written consent is another reason why they might not return the deposit, as the property was not returned in the same condition it was rented. Changes like altering the flooring, furniture, or making renovations in the bathroom or kitchen, even painting the house without consulting the landlord first, can be grounds for not returning the deposit.
3. Unpaid Rent
Most rental contracts include a clause specifying that if the tenant has unpaid rent at the end of the contract, the landlord can justify not returning the deposit. However, the deposit should not be used to cover unpaid rents. Some tenants might use the deposit to pay the last month’s rent, but this is not advisable. If there are no damages, the landlord can deduct the last month’s rent from the deposit given. However, if there are damages, the landlord can legally claim the rent from the tenant.
4. Returning the Property in Poor Condition
Returning the property in good condition is essential. If it’s dirty or requires maintenance work to restore it to its original state, the landlord might not return the deposit.
5. Leaving the Rental Property Early
According to Article 11 of the LAU, “The tenant may withdraw from the lease contract, once at least six months have elapsed, provided that they give the landlord at least thirty days’ notice. The parties may agree in the contract that, in the event of withdrawal, the tenant must compensate the landlord with an amount equivalent to one month’s current rent for each year of the contract remaining. Periods shorter than a year will result in proportional compensation.”
Therefore, if it has been agreed in the rental contract, the landlord might not return the deposit if the tenant leaves the property prematurely.
Understanding these potential pitfalls can help ensure you get your rental deposit back when you move out. Always read and understand your rental contract thoroughly, maintain open communication with your landlord, and document the property’s condition before and after your tenancy.
For more tips and advice on renting properties in Andalusia contact us at Real Estate Andalusia. Our team is here to help you with all your property needs, ensuring a smooth and transparent rental experience.
