When signing a lease, it's common to come across several different guarantee-related terms, sometimes used interchangeably in everyday language, but which actually have distinct legal treatment worth understanding well.
The legal deposit: mandatory and capped
This is the mandatory guarantee set by the Urban Leases Law: generally, it's equal to one month's rent for a primary residence lease (two months' rent if used for something other than housing, such as commercial premises). Its amount is legally capped, and in many autonomous regions the landlord is required to deposit it with a specific regional public body, not simply keep it in their own account.
Additional guarantees: no fixed legal cap, but must be reasonable
Beyond the mandatory legal deposit, the law allows additional guarantees to be agreed (extra deposits, guarantees) to ensure the tenant meets their obligations. Unlike the legal deposit, these additional guarantees don't have as strict a legal cap on amount, though their size must be reasonable and expressly agreed in the contract, not imposed arbitrarily or disproportionately.
The guarantee: an additional personal or bank guarantee
The guarantee (personal or bank-issued, as explained in another article) is another form of additional security, distinct from a cash deposit: instead of handing over money upfront, a third party (an individual or an institution) commits to answering if the tenant fails to meet their obligations.
Why it's important to distinguish these concepts in the contract
Having the contract clearly specify which part of the money handed over corresponds to the legal deposit (subject to its own specific deposit and return rules) and which part corresponds to additional agreed guarantees (with a different regime) avoids confusion and disputes, especially when it comes to the refund at the end of the contract.
Returning the deposit at the end of the contract
At the end of the lease, once it's confirmed the property is handed back in proper condition and there's no outstanding rent, the landlord must return the deposit (and any additional guarantees, where applicable) within the timeframe set by applicable regulation, only being able to deduct amounts corresponding to proven damage or outstanding tenant debts, not any arbitrary item.
What to do if the landlord doesn't return the deposit properly
If the landlord withholds the deposit without proper justification, or delays its return unjustifiably, the tenant can claim it back, including any applicable late-payment interest, either amicably or, if necessary, through the courts.
Budget correctly for the initial cost of renting
When calculating how much you need to rent a home, remember to add the legal deposit, any additional agreed guarantee, and any real estate agency fees, not just the first month's rent. Our rent vs buy calculator helps you compare the total cost of this option against buying.