If someone were to create a ranking of the rental-related issues that most often trigger disputes between tenants and landlords, security deposits would undoubtedly rank near the top. The deposit is still a commonly used form of financial protection for landlords — but many property owners remain unaware, for example, that the deposit they return to the tenant must be indexed (valorised). A lack of knowledge is also evident on the tenant’s side. With this in mind, experts from GetHome.pl remind both parties of the most important facts regarding rental deposits.
The Tenants’ Rights Act sets the rules
This widespread confusion about how deposits work stems from the fact that the parties to a rental agreement are often unfamiliar with the provisions of the Act on the Protection of Tenants’ Rights. This Act is crucial because — as a more specific legal act — it takes precedence over general provisions of the Civil Code in the case of residential leases.
The act explicitly states that:
“The conclusion of a rental agreement may be conditional upon the tenant paying a security deposit to cover the landlord’s receivables as of the day the premises are vacated (…)” (Art. 6, sec. 1).
A ruling by the Supreme Administrative Court dated 3 December 2013 (I OSK 2154/13) confirmed that paying a deposit may be a necessary condition for renting the property. However, landlords are not free to set the amount arbitrarily — statutory limits apply. The maximum deposit may be:
- up to 12 times the monthly rent (general rule — based on rent at the signing date)
- up to 6 times the rent — in the case of occasional or institutional lease
Regardless of lease type, the deposit must be returned within one month of the tenant vacating the property — after deducting any valid landlord claims. Importantly, the indexing obligation applies in every type of lease.
Deposit indexation — simple in theory, expensive in practice?
Indexation means that the landlord must return an amount equal to the current monthly rent (as of the return date) multiplied by the rent multiplier originally used to calculate the deposit. In other words, the refund must reflect any rent increases that occurred during the tenancy.
Crucially: if the rent went down — indexation cannot be negative. In such a case, the landlord simply returns the original deposit amount (minus any justified deductions, e.g. for damage).
What can reduce a deposit? Not just physical damage
Indexation matters because only from the indexed deposit may the landlord deduct any receivables valid on the day the premises are vacated. Typical deductions include:
- unpaid rent or compensation for unlawful occupancy
- unpaid charges beyond the landlord’s control (e.g. water, sewage, gas, electricity, waste management)
- costs related to technical wear and tear of certain equipment (as defined in Art. 6b sec. 2 point 4 of the Tenants’ Rights Act — e.g. depreciated value of a gas cooker)
- costs of repairs carried out by the landlord due to the tenant’s failure to fulfil obligations
- compensation for tenant-caused damages, if documented and properly assessed
GetHome.pl experts note that the list of possible deductions is extensive — but one rule always applies: every deduction must be properly justified and documented. Any attempt by a landlord to exploit their position by making unjustified deductions should be considered unacceptable. At the same time, tenants are not blameless — some challenge even obvious damage.
Ultimately, faster and more efficient court procedures would help prevent abuse — on both sides.
Source: https://ceo.com.pl/lokator-kontra-wlasciciel-wojna-o-kaucje-trwa-a-prawo-stoi-po-stronie-79379
