What is the security deposit?

Also called “deposit,” the refundable damage security deposit, corresponds to the amount given to the owner when the tenant signs the rental agreement.

The owner holds the security deposit, in this way, they protect the property from any damage or unpaid rent due by the time the tenant departs the premises at the end of the lease.

The security deposit is a sum of money paid at the signing of the lease. It is kept by the owner/landlord for the duration of the lease. At the end of the lease, it is either returned to the tenant or kept partially or totally to cover any damage.

The amount of the security deposit must be included in the rental agreement. It cannot be greater than:
  • 1 month's rent for the rental of an unfurnished rental (excluding rental charges)
  • 2 months' rent for the rental of furnished rental (excluding rental charges)
This necessarily concerns principal residence leases only. 

The ALUR Law of March 24, 2014, regulates the deadlines for returning the security deposit. The owner/landlord must return the security deposit to the tenant within a period of:
  • 1-month maximum if the exit inventory is identical to the entrance inventory,
  • 2 months maximum if the exit inventory is different from the entrance inventory.

Important Note:
When the owner/landlord does not return the security deposit within the prescribed time, they must pay late payment interest to the tenant. It's increased by an amount equal to 10% of the monthly rent (excluding charges) for each month of delay.

As a result, the security deposit does not replace the last rent. It is actually not legal to deduct the security deposit to pay your last month's rent to the landlord. 

A tenant who deducts the amount of the security deposit from the last rent cannot obtain a rent receipt.
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