Is Your Landlord Refusing to Return Your Security Deposit? Know Their Rights and How to Defend Yourself

Only Actual Debts Can Be Deducted, Not Fictitious Damages

The basic rule is clear: At the end of the lease, the landlord must return the security deposit to the tenant, deducting only what the tenant actually owes. This can include unpaid rent, unpaid utility advances, or provable damage to the apartment's furnishings caused by the tenant.

However, under no circumstances can the landlord deduct money from the deposit for normal wear and tear of the apartment (for example, worn linoleum, faded paint, or minor scratches corresponding to the length of your stay). Fictitious, presumed, or exaggerated claims cannot be deducted from the deposit either. In the event of a dispute, it is the landlord who must prove in court that they have a legitimate right to use the deposit.

Do Not Underestimate Handover Protocols

Since the burden of proof lies with the landlord, the handover protocol is the key document for the return of the deposit. This applies to both the protocol from the beginning of the lease and the one from its end.

If you are moving into a new rental, insist that all existing damages, even the smallest ones (scuffed doors, a stain on the carpet, a scratched stovetop), are carefully recorded in the handover protocol. I also highly recommend taking detailed photos and a video of the entire apartment upon taking it over.

The exact same rule applies when returning the apartment to the landlord. Carefully document the condition of the apartment and, again, take photos or a video. If the protocols and your photographs do not reliably show that the damage to the property occurred during your lease, it will be very difficult for the landlord to prove their right to keep your deposit.

When Must the Landlord Return the Deposit? Don't Wait for Months

A very common bad practice is a situation where the landlord refuses to return the deposit, claiming they are waiting for the annual utility settlement, which might not arrive for another six months. From a legal standpoint, this is a highly questionable practice.

Although various things can be stipulated in the contract, the Czech Civil Code states that the landlord must return the deposit upon the termination of the lease. The professional legal community thus leans towards the interpretation that the deposit should be returned on the day the lease ends, or at most within a reasonable and short period (a matter of days, or weeks at most). The landlord definitely cannot retain it as a "guarantee" for uncertain future utility underpayments.

Your Counterarguments: Interest on the Deposit and Penalty for Late Settlement

If your landlord is not communicating with you or refuses to return the deposit, it often helps to remind them of your other statutory rights, which can cost them dearly:

1. Right to interest on the deposit: By law, you are entitled to interest on the provided deposit for the entire duration of the lease. This applies regardless of what is stated in the contract – you cannot validly waive this right. Therefore, it does not matter if the contract stipulates that the deposit does not accrue interest. As for the interest rate, current court decision-making practice tends to use the interest rate at which banks provide consumer loans (according to official statistics from the Czech National Bank). As of the writing of this article, this rate is 7.8% p.a. (annually). The relevant rate is the one valid at the time the contract was concluded. If you had a deposit of CZK 40,000 held by the landlord at this rate for 3 years, they owe you almost CZK 10,000 in interest alone.

2. Penalty for delayed settlement: Always check whether your landlord has delivered the utility settlements on time in the past. The deadline is usually the end of April. If the landlord was late, the law grants you the right to a penalty of CZK 50 for each day of delay. A delay of several months can generate a penalty in the thousands of crowns, which you can claim.

When a Lawyer Steps In, the Rhetoric Changes

Landlords often ignore emails and phone calls from tenants themselves, relying on the assumption that tenants won't want to go to court over a deposit. However, the situation changes once they receive a pre-litigation notice from a lawyer, clearly laying out the legal basis for the tenant's right to the return of the deposit, ideally including a reference to the right to interest and the penalty for late settlement. Landlords suddenly start communicating, and in most cases, it leads to a quick refund or a reasonable agreement without the need for a lawsuit. The services of a lawyer cost in the range of a few thousand crowns, which is well worth it given the standard amount of a rental deposit today.

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Summary: How Not to Lose Your Deposit?

🚩 You don't pay for fictitious damages: The landlord can only deduct actual and proven debts or damages from the deposit, not normal wear and tear of the apartment.
🚩 The protocol is essential: Always insist on a detailed handover protocol at the beginning and end of the lease. Take thorough photos and videos of the apartment.
🚩 Don't let them brush you off: The deposit should be returned to you immediately upon the end of the lease; the landlord cannot withhold it while waiting for the utility settlement.
🚩 You have a right to interest: Do not forget that, in addition to the deposit itself, you are also entitled to statutory interest for the entire time the landlord held your money.

Is Your Landlord Withholding Your Deposit?

Don't let yourself be deprived of your money. I will gladly assess your situation and help you with the quick and effective recovery of your deposit, interest, and any contractual penalties. Contact me today and find out your realistic chances of success, or read more about my real estate law services.