Security Deposit: Everything Tenants and Landlords Need to Know
Our real estate agency in Paris's 16th arrondissement gives you all the information you need to understand the security deposit.
What is a security deposit?
The security deposit is a sum of money paid by the tenant to the landlord (or to the agency managing the property) at the time the lease is signed. It serves as financial security for the landlord, allowing them to cover any potential breaches by the tenant, such as repairs related to damage found in the rental unit at the time of theTenant's Move-Out Inspection.
Contrary to popular belief, the security deposit is not an advance on rent but rather a separate monetary deposit governed by law.
What amount can be requested as a security deposit?
The amount depends on the type of lease:
- Unfurnished rental: The security deposit may not exceed one month's rent, excluding utilities;
- Furnished rental: it can be up to two months' rent, excluding utilities;
- Vacation rentals or short-term leases: the rules differ and must be specified in the contract.
Good to know: The landlord cannot charge more than the legal limits. However, if the rent is adjusted, the initial security deposit remains the same.
When and how should the security deposit be paid?
The security deposit must be paid when the lease is signed. Payment can be made directly to the landlord, to the real estate agency if it handles rental management, or through an organization such as Action Logement or the Housing Solidarity Fund (FSL).
Depending on the payment method you choose:
- If paying in cash, the tenant has the right to request a receipt confirming the amount paid;
- If payment is made by check, the landlord is required to cash it.
In addition, when signing the lease, it is common for the tenant to pay the first month’s rent, the security deposit, and the brokerage fees in a single lump sum.
What is the security deposit used for?
The security deposit is used to cover any amounts owed by the tenant upon moving out, such as:
- Rental repairs that have not been completed;
- Damage noted during the move-out inspection;
- Delays in rent payments or unpaid rent;
- Unpaid recoverable charges.
The landlord must be able to provide supporting documentation—such as invoices or estimates—for any deduction from the security deposit. Without such documentation, no amount may be deducted.
As a reminder: the security deposit is intended first and foremost to cover the cost of repairs to an apartment that has not been maintained by the tenant in accordance with their obligations—and thus to address any damage that needs to be repaired—when the tenant moves out. After that, the security deposit may be used to settle any outstanding amounts owed by the tenant (rent, utilities, etc.).
