Deposits for Landlords: Caps, Safekeeping and Settlement
Short answer: A deposit may be at most 3 months' rent, excluding on-account payments (section 59(1) of the Danish Rent Act). Prepaid rent is separate: at most 3 months' rent, and never more than the rent for the tenant's notice period. No interest or separate account is required, but move-out claims must be made within the 2-week deadlines in section 187.
A landlord with an attractive apartment in a high-demand city considers setting the deposit high – it feels like extra security in case the tenant turns out not to pay. But the law sets a clear limit, and it applies whatever you agree in the lease.
The Cap: At Most 3 Months' Rent
The deposit may not exceed 3 months' rent – the ordinary rent, not on-account (a conto) payments for heating and water. If the rent is 12,000 kr. and the tenant pays 900 kr. on account, the highest lawful deposit is 36,000 kr. If you set it higher, the excess has been demanded unlawfully, and the tenant can claim it back, whatever the lease says. In properties with cost-based rent (omkostningsbestemt husleje), demanding too much is also a criminal offence (section 62 of the Rent Act).
Prepaid Rent Has Its Own – Often Lower – Cap
Prepaid rent is rent for the final period of the tenancy, paid in advance. It may be no more than 3 months' rent and, at the same time, no more than the rent the tenant must pay during their notice period (section 59(3) of the Rent Act). Once the tenancy has been terminated, the tenant can set it off against the last months' rent.
| Tenancy | Maximum deposit | Maximum prepaid rent |
|---|---|---|
| Apartment with 3 months' notice | 3 months' rent | 3 months' rent |
| Room in your own home with 1 month's notice | 3 months' rent | 1 month's rent |
If the Rent Goes Up
If you implement a rent increase, you can require the deposit and prepaid rent to be adjusted so they equal the same number of months. The increase is collected in equal monthly amounts over as many months as the amount represented (section 60 of the Rent Act). If the rent is reduced, you must pay back a corresponding amount.
How to Set It Up Correctly
Use the authorised lease form, Typeformular A, where the deposit and prepaid rent are listed separately in section 4. When you create a listing on LejLet.nu, you can't enter a deposit or prepaid rent above 3 times the monthly rent. The system doesn't, however, check the lower limit on prepaid rent for shorter notice periods – you must comply with that yourself, for example when you let a room in your own home. Make sure the figures in the lease match the listing.
What the Deposit May Cover
The deposit is your security for the tenant's obligations at move-out: refurbishment the tenant is liable for, unpaid rent and, for example, an extra payment on utility statements. You may not dip into it during the tenancy, for example to cover a month the tenant is behind on. The deposit must stay put until the tenancy ends and your claims can be settled.
Do You Have to Keep It in a Separate Account?
No. According to the explanatory notes to the law (lovens forarbejder), there are no requirements on how you keep a deposit, and the tenant can't demand interest on it. In a sublet, the subtenant can instead choose to provide a bank guarantee or pay the amount into a separate escrow account (section 59(2)). Either way, keep documentation of the payment.
At Move-Out: The Deadlines Apply to You
If you rent out more than one apartment, you must hold a fraflytningssyn (move-out inspection) within 2 weeks of learning the tenant has moved out, invite the tenant in writing at least 1 week ahead, and hand over a move-out report (section 187(3)-(4)). If you don't follow the rules, you lose the claim for refurbishment. If you rent out only one home, you don't have to hold a move-out inspection – but you must still make your claims for refurbishment no later than 2 weeks after the moving-out day, or you lose them (section 187(2)). So go through the home with the tenant on the moving-out day, and send your claims in writing the same week.
The law sets no deadline for repayment, but according to the explanatory notes, the settlement should happen without undue delay and within 4 weeks. You may hold back a reasonable amount for a utility statement that hasn't been settled yet. The whole process is set out in When Your Tenant Moves Out.