Security deposit: what is the maximum amount and the return deadline?

Maximum amount: one month for unfurnished, two months for furnished

For unfurnished rentals, Article 22 of Act No. 89-462 of 6 July 1989 caps the security deposit at one month's rent excluding charges. For furnished rentals, Article 25-6 of the same Act allows up to two months' rent excluding charges. The amount must appear in the lease agreement and cannot be revised during the lease or upon its renewal.

Two prohibitions complete this cap: no security deposit may be required when the rent is payable in advance for a period longer than two months (quarterly rent paid in advance, for example), and the mobility lease (Articles 25-12 and following of the 1989 Act) excludes any security deposit.

• Unfurnished rental: 1 month's rent excluding charges maximum (Article 22)
• Furnished rental: 2 months' rent excluding charges maximum (Article 25-6)
• Mobility lease: no security deposit may be required
• The deposit bears no interest and is never revisable during the lease

Return: a deadline of one or two months depending on the inventory of fixtures

The return deadline depends on the comparison of the inventories of fixtures. If the move-out inventory matches the move-in inventory, the landlord has a maximum of one month to return the entire security deposit. If differences justify deductions, the deadline is extended to two months.

The deadline runs from the handover of the keys to the landlord or their agent, carried out in person or by registered letter with acknowledgment of receipt. The tenant must indicate the address of their new home at the time of this handover: the return is made to this address, and any delay attributable to a tenant who has not communicated it does not entitle them to a penalty.

When the dwelling is located in a building under condominium ownership, the landlord may retain a provision limited to 20% of the security deposit until the annual closing of the building's accounts. The final reconciliation takes place within the month following the approval of the accounts, unless the parties agree to settle all the accounts immediately.

What deductions may the landlord make?

The landlord may only retain justified amounts: unpaid rent or charges, the cost of repairs related to damage attributable to the tenant, or an outstanding reconciliation of charges. Each deduction must be supported by documentation given to the tenant: comparison of the move-in and move-out inventories, quotes or invoices, a bailiff's report (constat de commissaire de justice), or dated photographs.

Wear and tear (vétusté), that is, the normal aging of the dwelling due to time and to a use consistent with the lease, can never be charged to the tenant. Only damage exceeding normal use of the premises may give rise to a deduction, where appropriate after applying an allowance for wear and tear.

Failure to return: penalty of 10% of the rent per month of delay

In the absence of a return within the legal deadlines, the security deposit still owed to the tenant is increased by a sum equal to 10% of the monthly rent excluding charges for each monthly period commenced late (Article 22). This increase does not apply when the delay stems from the tenant's failure to provide their new address.

In case of a deadlock, first send a formal notice by registered letter with acknowledgment of receipt. You may then apply free of charge to the departmental conciliation commission (commission départementale de conciliation), then, failing an agreement, to the protection litigation judge (juge des contentieux de la protection) of the court with jurisdiction over the dwelling. The action is subject to the three-year limitation period applicable to actions arising from the lease (Article 7-1 of the 1989 Act).