In French, the security deposit, or dépôt de garantie, is often incorrectly referred to as a caution.
These are different concepts:
a security deposit is money paid to the landlord;
a guarantor is a person or organization that undertakes to pay certain amounts if the tenant defaults.
The security deposit can therefore remain relevant throughout the entire lease: it may be paid when the lease is signed, retained during the tenancy and returned after move-out, subject to any lawful and documented deductions.
Key point: for an unfurnished lease used as the tenant's main residence, the security deposit is generally capped at one month's rent excluding charges. For a furnished main-residence lease, it may reach two months' rent excluding charges.
1. What is the security deposit used for?
The security deposit helps secure the tenant's rental obligations.
At the end of the lease, certain amounts may be deducted where legally permitted and properly documented.
These may include, depending on the circumstances:
unpaid rent or charges;
tenant-caused damage;
rental repairs that were not carried out;
certain amounts the landlord may have to pay on the tenant's behalf.
The deposit is not an additional fee that automatically belongs to the landlord.
The balance must be returned to the tenant at the end of the tenancy after any justified deductions.
2. What is the maximum deposit for an unfurnished rental?
For unfurnished leases governed by the French Law of 6 July 1989, Article 22 limits the deposit to one month's base rent, excluding charges.
Example
Monthly rent: €900
Charges: €100
Maximum security deposit:
€900
The charges are not added when calculating the statutory ceiling.
3. What is the maximum deposit for a furnished rental?
For a furnished lease used as the tenant's main residence, Article 25-6 provides a different limit.
The security deposit may reach two months' base rent, excluding charges.
Example
Monthly rent: €900
Charges: €100
Maximum deposit:
€1,800
The applicable limit therefore depends on the type of lease.
4. Is a security deposit allowed for a mobility lease?
No.
Under Article 25-17 of the French Law of 6 July 1989, a landlord may not require a security deposit for a bail mobilité, or mobility lease.
The ordinary two-month furnished-rental rule should therefore not be applied automatically to this type of lease.
5. When is the security deposit paid?
Where the lease provides for a security deposit, it is generally paid when the rental agreement is signed.
Article 22 provides that the payment may be made:
directly by the tenant;
or through a third party.
The deposit amount should be stated in the lease when one is required.
6. Can a landlord request a deposit when rent is paid several months in advance?
Not in every situation.
Article 22 provides that a security deposit cannot be required when rent is payable in advance for a period longer than two months.
For example, where the lease requires quarterly advance rent payments, the landlord generally cannot also require a security deposit.
If the tenant later requests monthly payment in accordance with the applicable rules, a deposit may then be requested.
7. Can the security deposit be increased during the lease?
No.
The deposit is not revised during the lease or upon renewal.
An increase in the monthly rent therefore does not allow the landlord to ask the tenant to top up the security deposit to match the new rent.
8. Does the deposit earn interest for the tenant?
Not under the regime established by Article 22.
The security deposit does not earn interest for the tenant during the tenancy.
The landlord must nevertheless be able to return the amount due when the lease ends.
9. Can the tenant use the security deposit to pay the final rent?
The tenant cannot unilaterally decide not to pay the final rent simply because the landlord already holds a security deposit.
The two amounts correspond to separate obligations:
the tenant must pay the rent and charges due under the lease;
the landlord must return the security deposit after the tenancy ends, subject to any lawful and justified deductions.
The deposit is therefore not automatically an advance payment of the final month's rent.
The parties may nevertheless agree to a set-off
The situation is different if the tenant expressly asks the landlord to set off all or part of the outstanding rent against the amount that will be owed back to the tenant as the security deposit, and the landlord agrees.
The French Civil Code allows parties to agree to extinguish reciprocal obligations through contractual set-off.
This should not be described as the landlord simply 'deducting the final rent from the security deposit'.
It is better described as an agreed set-off between reciprocal monetary obligations, accepted by both parties.
Example
Initial security deposit:
€1,300.
Outstanding rent at the end of the tenancy:
€136.
The tenant may request that the €136 outstanding rent be set off against the amount of the security deposit that would otherwise be returned.
If the landlord accepts, the reciprocal obligations are extinguished to the extent of €136.
The remaining deposit to be settled is then:
€1,300 - €136 = €1,164
The €1,164 balance remains subject to the normal security-deposit return rules and any other justified deductions that may apply.
Why should the agreement be documented?
A written agreement helps avoid later uncertainty.
It may, for example, be titled:
'Request for set-off between outstanding rent and the security deposit'
It should clearly identify:
landlord and tenant;
property and lease;
initial security deposit;
exact outstanding rent or charges;
the tenant's express request for set-off;
the landlord's express acceptance;
the amount set off;
the remaining security-deposit balance;
date of the agreement;
signatures of the parties.
It can also state that the agreed set-off does not, unless otherwise agreed, prevent the landlord from making other deductions that are later justified when the deposit is finally settled.
Set-off and deduction are not the same thing
Situation
Legal/contractual nature
Tenant simply stops paying the final rent
Unpaid rent
Landlord deducts a justified amount when returning the deposit
Security-deposit deduction
Tenant asks to use part of the deposit against outstanding rent and landlord agrees
Contractual set-off
In the final situation, set-off is the more accurate term.
The rent is not simply deducted unilaterally by the landlord. Both parties agree that their reciprocal obligations are extinguished to the agreed amount.
10. When does the return deadline begin?
The deadline begins when the keys are returned to the landlord or their representative under the conditions provided by French law.
The end date of the lease or the date of the move-out inspection does not necessarily, by itself, start the clock.
When returning the keys, the tenant should also provide their new address to the landlord.
11. What is the deadline when the move-out inspection matches the move-in inspection?
When the move-out inspection is consistent with the move-in inspection, the security deposit must be returned within a maximum of one month from the return of the keys.
Certain amounts may still be deducted where legally permitted and properly documented.
12. What is the deadline when the inspections differ?
When the move-out inspection is not consistent with the move-in inspection, the maximum return period is two months from the return of the keys.
This can give the landlord time to assess and document certain tenant-caused damage.
It does not permit arbitrary deductions.
Any amount retained must be properly supported.
13. What may be deducted from the security deposit?
Article 22 allows certain outstanding amounts to be deducted, provided they are duly justified.
Depending on the circumstances, supporting evidence can include:
move-in and move-out inspection reports;
photographs;
invoices;
repair estimates;
documents showing unpaid rent or charges;
other evidence supporting the amount claimed.
The security deposit should not be treated as a flat-rate refurbishment allowance.
14. Can ordinary wear and tear be charged to the tenant?
Tenant-caused damage should be distinguished from normal deterioration caused by time and ordinary use.
The move-in and move-out inspections are therefore important for assessing what has changed during the tenancy.
Detailed descriptions and, where appropriate, photographs can help establish the condition of the property more clearly.
15. Why are property inspections important?
The inspection reports provide a comparison between the condition of the property at move-in and at move-out.
They can document matters such as:
walls;
floors;
ceilings;
equipment;
meter readings;
furniture in furnished rentals;
existing defects or damage.
A detailed inspection reduces uncertainty when the tenant leaves.
16. Can part of the deposit be retained pending service-charge reconciliation?
Yes, in certain multi-unit buildings.
The landlord may prepare a provisional service-charge statement and retain a justified provision until the building's annual accounts are finalized.
The provision may not exceed 20% of the security deposit.
The final reconciliation and return of the remaining balance must then take place within one month after the building accounts are finally approved.
The parties may also agree to settle the accounts immediately.
17. What happens if the security deposit is returned late?
Article 22 provides for a statutory increase where the amount still owed to the tenant is not returned within the required deadline.
The increase is 10% of the monthly base rent for each monthly period of delay that has begun.
Simplified example
Monthly rent excluding charges: €900
Penalty for one monthly period of delay:
€90
The penalty does not apply where the delay results from the tenant's failure to provide their new address when required.
18. Example of a full deposit return
Initial deposit: €900.
At move-out:
the move-out inspection matches the move-in inspection;
there is no unpaid rent or charge;
no other justified amount needs to be retained.
Amount returned:
€900
The maximum return deadline is one month from the return of the keys.
19. Example with a deduction
Initial deposit: €900.
The landlord documents tenant-caused damage requiring €180 of repairs.
If no other sums are due:
€900 - €180 = €720
The landlord returns €720 and should retain evidence supporting the €180 deduction.
20. Security deposit and guarantor: what is the difference?
The concepts are frequently confused.
Security deposit
Money paid at the beginning of the tenancy.
Guarantor
A person or entity that undertakes to meet certain tenant obligations if the tenant defaults.
The two mechanisms therefore serve different purposes.
21. What happens if the property is sold during the tenancy?
If the rented property is transferred to a new owner during the lease, the obligation to return the security deposit falls on the new landlord when the tenancy ends.
Any arrangements between the former and new owners concerning transfer of the money do not alter that obligation towards the tenant.
22. Best practices for landlords
Good security-deposit management begins when the tenant moves in.
Landlords should consider:
stating the deposit amount clearly in the lease;
recording the payment date and method;
retaining proof of payment;
preparing a detailed move-in inspection;
keeping all lease documents together;
recording the key-return date accurately;
comparing move-in and move-out inspections;
documenting any deductions;
documenting any agreed set-off against outstanding rent;
calculating the returned amount transparently;
retaining evidence that the deposit was returned.
23. How can Homellya help organize security-deposit records?
In a digital rental-management process, the security deposit should not become an isolated payment that is difficult to trace several years later.
Homellya helps centralize lease information and the documents associated with a tenancy.
This makes it easier for landlords to keep the relevant information together and retrieve it when the tenant moves out.
A dedicated return document can also formalize the initial deposit, any deductions and the amount ultimately returned.
Where landlord and tenant agree to set off outstanding rent against part of the deposit, that arrangement can also be documented separately so it remains clearly distinguishable from deductions made during the final deposit settlement.
Frequently asked questions
What is the maximum deposit for an unfurnished rental in France?
For unfurnished leases governed by the Law of 6 July 1989, the deposit is limited to one month's rent excluding charges.
What is the maximum deposit for a furnished rental?
For a furnished main-residence lease, the deposit may reach two months' rent excluding charges.
Can a landlord require a deposit for a mobility lease?
No. Article 25-17 prohibits security deposits for mobility leases.
Can the deposit be increased when the rent increases?
No. The security deposit is not revised during the lease or at renewal.
How long does the landlord have to return the deposit?
The maximum period is generally one month where the move-out inspection matches the move-in inspection and two months where it does not. The deadline begins when the keys are returned.
Can deductions be made?
Yes, for certain outstanding amounts or tenant-caused damage, provided the deductions are duly justified.
Can the security deposit be used for the final rent if the landlord agrees?
Yes, the parties may agree to a contractual set-off.
The tenant cannot impose this unilaterally. However, the tenant can request that all or part of the outstanding rent be set off against the amount of the security deposit due back, and the landlord may expressly accept.
A written agreement identifying the amount set off and the remaining deposit balance is recommended.
What is the difference between a set-off and a security-deposit deduction?
A deduction is an amount retained by the landlord when settling the deposit because it is legally justified.
A contractual set-off is an agreement between landlord and tenant to extinguish reciprocal obligations to the agreed amount, such as outstanding rent and part of the security deposit due back to the tenant.
Can part of the deposit be kept pending annual service-charge accounts?
In certain multi-unit buildings, a justified provision of up to 20% of the deposit can be retained pending final service-charge reconciliation.
What happens if the deposit is returned late?
The remaining amount owed may be increased by 10% of the monthly base rent for every monthly period of delay that has begun, subject to the statutory conditions.
Key takeaways
A security deposit is different from a guarantor.
For unfurnished residential leases, the deposit is generally capped at one month's rent excluding charges.
For furnished main-residence leases, it may reach two months' rent excluding charges.
A mobility lease cannot include a security deposit.
The deposit is not adjusted during the lease.
A tenant cannot unilaterally use the deposit instead of paying the final rent.
Landlord and tenant may nevertheless expressly agree to a contractual set-off between outstanding rent and the amount of the deposit due back.
A contractual set-off should not be confused with a security-deposit deduction.
The return deadline is generally one or two months after the keys are returned, depending on the move-out inspection.
Deductions must be justified.
A provision of up to 20% may be retained in certain multi-unit buildings for service-charge reconciliation.
Late return can trigger a statutory increase equal to 10% of the monthly base rent for each monthly period of delay begun.
Conclusion
The security deposit is an important part of rental management, but French law regulates both the amount that may be requested and how it must be returned.
Landlords should determine the correct amount for the lease type, keep a clear record of the original payment and prepare the evidence needed for a transparent settlement at move-out.
Where outstanding rent remains, two situations should be distinguished: the tenant cannot simply decide to offset the final rent against the deposit, but an agreed contractual set-off may be used if both landlord and tenant expressly accept it.
Keeping the lease, inspections, security deposit, set-off agreements and return information in one organized rental file can significantly reduce mistakes and disputes.
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Legal sources
French Law no. 89-462 of 6 July 1989, Article 22.
French Law no. 89-462 of 6 July 1989, Article 25-6 on furnished rentals.
French Law no. 89-462 of 6 July 1989, Article 25-17 on mobility leases.
French Civil Code, Articles 1347 to 1348-2 on set-off, including Article 1348-2 on contractual set-off.
Service-Public.fr, guidance on security deposits in residential leases.
This article provides general information and does not constitute personalized legal advice.
