How high may the security deposit be and how is it handled?
The deposit secures the landlord against outstanding claims. It must be held separately and properly accounted for at the end of the tenancy.
The security deposit is a sum the tenant lodges on moving in. It protects the landlord if claims are outstanding at the end of the tenancy, for instance unpaid rent or damage. How high it may be and how it is treated is governed by law, which is why we give no fixed figure here.
What the deposit is for
The deposit covers justified claims of the landlord that are outstanding at the end of the tenancy. That includes unpaid amounts or damage caused by the tenant that goes beyond normal wear and tear. If everything is in order, it is repaid.
Holding and repayment
Held separately
The deposit must be held separately from the landlord's other assets. That keeps it protected and clearly attributable to the tenant.
Settlement at the end
After the flat is handed back, the deposit is settled. Justified claims may be deducted, the remainder must be repaid. A good handover record is decisive here, see Why does a handover record matter?.
There is rarely a dispute about the deposit when handover and settlement are cleanly documented.
Common points of dispute at the end
Most discussions about the deposit arise on moving out. What counts as normal wear and tear and what is genuine damage the tenant must pay for is often disputed. The question of how quickly the deposit must be repaid also causes regular friction. Both can be avoided if the condition on moving in and out is cleanly documented and the settlement is easy to follow. Working carefully from the outset saves lengthy arguments. As managers we make sure the deposit is handled correctly and settled fairly at the end, so that neither tenant nor landlord loses out.
How we support you
As managers we hold deposits properly, document the handover and settle them traceably at the end. That avoids disputes between tenant and landlord. Who pays for damage is covered in Who pays for damage in a rented flat?. The exact amount and legal details we settle for your particular case. We have looked after properties in Graz and the surrounding area since 1988. Arrange a conversation.