Can my landlord demand three months rent as a deposit?
Yes — three monthly rents are allowed, and not one franc more. For residential property the landlord may demand at most three monthly rents as security, and he must deposit the money at a bank in a savings account or custody account held in the tenant's name (§ 1090 Art. 14 ABGB). The myth runs in both directions. First: "The deposit sits in the landlord's account, that is normal." Wrong — and unlawful; since 1 January 2017 a blocked account in the tenant's name has been mandatory. Second, the reverse: "Three months rent is too much, that cannot be legal." No — for residential property three is exactly the statutory ceiling. It only becomes unlawful at the fourth.
📋 The rules
- The residential ceiling (Art. 14(2)): "For the rental of residential premises the landlord may demand at most three monthly rents as security." Three is the statutory maximum — not a guideline, a hard ceiling. The statute says monthly rents (Monatszinse), not "months of rent".
- The duty to deposit (Art. 14(1)): where the tenant provides security in money or securities, the landlord must place it at a bank in a savings or custody account held in the tenant's name. This applies to residential and commercial premises alike.
- Release requires both parties (Art. 14(3)): the bank may release the security only with the consent of both parties or on the basis of a final court decision. The landlord cannot get at your money on his own.
- The one-year rule (Art. 14(3)): if the landlord has not asserted a claim in court within one year of the end of the tenancy, the tenant may demand repayment directly from the bank.
- Commercial premises: no ceiling at all. The three-month cap applies expressly to residential property only. For commercial premises an unlimited security may be demanded — only the duty to deposit it in the tenant's name survives.
🔓 Exceptions
- Commercial leases: for shops, offices and workshops there is no upper limit on the deposit. Six monthly rents are lawful there if agreed — the cap in Art. 14(2) bites on residential property only.
- Only money and securities are covered — a widening loophole. Art. 14(1) speaks of security "in money or in securities". A bank guarantee, a surety or a deposit-insurance product is not caught by the wording of the deposit duty — take one out and you step outside the protection of the blocked account.
- Pre-2017 contracts: the statute contains no express transitional provision for Art. 14. The preparatory materials extend the duty to deposit to security already provided. Whether the three-month ceiling also applies retroactively is supported by no primary source — so we do not claim it.
⚠️ Penalties & fines
If the landlord demands more than three monthly rents for a home, the excess is recoverable. The real damage, though, comes from a breach of the deposit duty: if the money sits in the landlord's account rather than a blocked account in your name, there is no bank from which you can demand repayment once the year has run — Art. 14(3) simply has nothing to bite on. And if the landlord becomes insolvent, you drop to the status of an unsecured creditor and walk away with nothing. Because there is no conciliation board, you have to sue for your own money at the Landgericht.
📎 Official sources
- LILEX — Liechtenstein law gazette and consolidated legislation (register home page) →
- Government of the Principality of Liechtenstein (home page; report on tenancy law) →
- Roth+Partner Attorneys — commentary on tenancy law (firm home page) →
❓ Frequently asked
Whose name must the deposit account be in?
The tenant's. Art. 14(1) requires a savings or custody account at a bank held in the tenant's name — a deposit parked in the landlord's private account has been unlawful since 1 January 2017.
When do I get the deposit back?
The bank releases it when both parties agree or a final court decision exists. If the landlord has not asserted a claim in court within one year of the tenancy ending, you can demand repayment directly from the bank.
Can a landlord demand more than three months for a shop?
Yes. The three-month cap applies expressly to residential premises only, so for commercial property the amount of security is unlimited. The duty to hold it in the tenant's name still applies there.
What about a deposit-insurance product instead of cash?
Art. 14(1) only covers security in money or securities. Bank guarantees, sureties and deposit insurance fall outside the deposit duty — which means you give up the protection of the blocked account.
Does the three-month cap apply to my 2014 contract?
That is unresolved. The preparatory materials extend only the duty to deposit to security already provided; no primary source says the ceiling applies retroactively, so we deliberately state no rule on it.
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