Security deposit

A security deposit is the amount a tenant provides as security for lease obligations such as rent and possible damage to the property. In residential and roofed workplace leases, the deposit may not exceed the statutory cap expressed in monthly rents.

Under the statute, a cash deposit must be placed in a time deposit account not to be withdrawn without the landlord's consent, and the bank may release it only with both parties' agreement or on the basis of a final enforcement proceeding or court decision. Handing the deposit over informally remains common in practice, but leaves the tenant unprotected at the return stage.

At the end of the lease, the landlord must return the deposit unless they notify within the statutory period that they have sued or initiated enforcement in connection with the lease. Ordinary wear and tear cannot be charged to the tenant, and deductions are permissible only for documented damage and claims.