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What is the key criterion for a deposit refund?

A deposit refund comes into play when the tenant returns the property in line with the contract and has no outstanding rent-related debt. In practice, the most disputed issues are the condition of the home at the time of handover, whether all keys were returned, the status of any dues or similar additional charges, and the handover records drawn up by the parties.

The rental agreement matters at this point. If the contract includes an inventory of fixtures, painted walls, appliances, meters or details on how the property must be handed over, the refund assessment is made within that framework. However, normal wear and tear and damage caused by tenant fault are not treated as the same thing.

Which conditions matter for landlords and tenants?

The difference between normal wear and damage

A major share of disputes between the landlord and tenant revolves around whether marks on the property count as “normal use” or “damage.” Reasonable deterioration over time is usually not considered a direct reason for a deduction. By contrast, a deduction may be claimed for broken, missing or non-working items, or for changes made in breach of the contract.

Documents to watch for during move-out

For damage assessment, the strongest evidence is the written handover report prepared on the day of move-out. The report should clearly state meter readings, key return, the condition of fixtures and any objections the parties may have. Photos, videos, message records and previous handover documents can also support the case in later disputes.

  • Handover report prepared at move-in and move-out
  • Inventory of fixtures and any additional protocols
  • Photo, video and correspondence records
  • Receipts for rent and additional charges paid

How is the move-out process handled if there is a dispute?

If no agreement can be reached over the refund after the move-out process is completed, it is important for the parties to first clarify their documents. The landlord is expected to show concrete evidence for any claimed deduction, while the tenant should be able to show the condition in which the property was returned. Written communication reduces uncertainty in any possible legal process.

If the parties still cannot agree, mediation and court routes may be considered depending on the nature of the dispute. At this stage, rather than general claims, it should be made clear why a deduction was made for a particular item or why a full refund is being requested. If documents drawn up at handover exist, the process can proceed more smoothly.

According to experts, the safest method is to inspect the property together on moving day, put all findings in writing and, if possible, sign them. That way, disputes over all or part of the deposit can be assessed through concrete records rather than vague statements.

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