Security deposit in France: return deadlines, deductions and late penalty

In brief

In France, the landlord must return the security deposit within one month of the keys being handed back if the exit inventory matches the entry inventory, within two months otherwise. After that, they owe 10% of the monthly rent excluding charges for each month of delay begun.

The deadlines

Leasy calculates the deadline from the date of the handover and the comparison of the two inventories, and shows it on the lease.

Deductions

The landlord may deduct sums the tenant still owes (unpaid rent or charges) and, if the exit inventory is not identical, the cost of damage or of repairs the tenant should have done. Each deduction must be justified: inventories, photos, a bailiff's report, invoices or quotes. The tenant can dispute them. In Leasy, the landlord sends a statement with each deduction and its supporting document; the tenant approves it or disputes it.

Late penalty

If the deposit is not returned on time, the landlord must add 10% of the monthly rent excluding charges per month of delay begun. Leasy calculates it and shows it in the statement. It does not apply if the tenant did not give their new address when handing back the keys.

If the deposit is not returned

1. Send a formal notice by registered letter with acknowledgement of receipt.
2. If the dispute is under €5,000, an amicable step is compulsory before going to court: a court conciliator, the departmental conciliation commission or a mediator.
3. Then bring the case before the court within three years.

The tenant may not deduct the deposit from their last rent.