🔑 Can my landlord keep my deposit?

With conditions

Quick answer

Only for proven arrears or damage — not for "wear and tear". Tenancies are governed by the Obligations and Contracts Act, and the deposit is security, not prepaid rent (unless expressly agreed). The landlord may withhold from it only on justified grounds: unpaid rent, unpaid bills or actual damage to the property. Fair wear and tear — faded paint, worn flooring, perished seals — is no ground for withholding. In a dispute the burden of proof lies with the landlord: they must explain why they are not returning the money. The law sets no express deadline for return, but that does not mean the deposit can be held indefinitely — what is reasonable is judged on the circumstances.

📋 The rules

The deposit is security, not prepaid rent
Withholding only for unpaid rent, bills or damage
Fair wear and tear is no ground for withholding
The burden of proof lies with the landlord
No statutory deadline, but it cannot be held indefinitely

🔓 Exceptions

If expressly agreed, the deposit may be set against the final month's rent
Where the property is transferred, the duty to return follows what was agreed
The absence of an inventory report weakens the position of both sides

⚠️ Penalties & fines

If the landlord refuses to return the deposit without grounds, you have a claim in the district court — and it usually succeeds, because it is the landlord who must prove the damage, not you who must prove its absence. So build the evidence in advance: an inventory report on moving in and on moving out, dated photos, meter readings for electricity and water, and written confirmation that bills are paid. Send a written demand for return with a clear deadline — it is both evidence and, often, enough to make the other side reconsider. Statutory interest runs on the sum withheld.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

When can a landlord keep the deposit?

Only on justified grounds — unpaid rent, unpaid bills or proven damage to the property. Fair wear and tear is not a ground for withholding the deposit.

Can I just not pay the last month instead?

Only if that was expressly agreed. The deposit is security, not prepaid rent, so unilaterally "using it up" is a breach of the tenancy agreement.

How soon must it be returned?

The law sets no express deadline, but that does not mean it can be held indefinitely. What is reasonable is judged on the circumstances of the particular tenancy.

Who has to prove the damage?

The landlord. In a dispute the burden of proof lies with them — they must explain why they are not returning the money, rather than you proving that you broke nothing.

What if they refuse?

Send a written demand with a clear deadline, and on refusal bring a claim in the district court. Keep the inventory report, dated photos and the meter readings.

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