Can the deposit cover the last month’s rent due on the lease of a property? That is the question many tenants ask themselves when it comes time to end the relationship with their landlord and hand over the property. This is, of course, an understandable and frequent concern that we will clarify in the next post.
Can the deposit cover the last month’s rent or not?
Before explaining whether the deposit can cover the last month’s rent, let us clarify that, in the Valencian Community, this issue is regulated by Decree 46/2022. This decree sets out how the system of security deposits for renting urban properties in Valencia is handled.
According to this rule, the security deposit is mandatory for the tenant; by making this deposit, you offer the landlord some guarantees about damages to your property for the duration of the lease.
The amount required for this concept, in general, is one month’s rent in cash. But if the amount has not been specified in the contract, it is calculated on 1% of the cadastral value of the property.
The return of the deposit
The security deposit, in no case, is the advance payment of the last month’s rent. This can be specified in the contract; although the law is clear as to its total or partial return by the lessor, one month after the property has been returned.
The deposit is returned in full to the tenant if, at the end of the contract, it is not necessary to cover damages caused during the tenant’s stay in the property.
Otherwise, you will be refunded the remaining amount, after repairs. It should be taken into account that the amount of the bond is not always equivalent to the last monthly payment; sometimes, the amount of the monthly payment is higher, so the bond does not cover it.
Likewise, the refund will depend on whether or not there is a situation of non-payment by the tenant. In this case, the lessor is entitled to retain this initial deposit as payment or part thereof. The owner, however, always has the option of considering a
non-payment insurance
as a guarantee against this type of problem.
Can the tenant resort to the figure of compensation?
The compensation does not apply in this case, since the obligation to pay the last month’s rent arises while the contract is in force.
We already know that the value of the bond is not a liquid, prescribed or enforceable sum. The compensation must wait before it can be applied:
The time of settlement of the contract, after delivery of the property.
That the condition of the returned property has been checked for damage.
That the lessor has covered the outstanding debts for supplies or community corresponding to the tenant.
Thus, once the rental contract is terminated, the landlord has 30 days to return the deposit, after receiving the keys; sufficient time to determine any expenses or discounts based on the obligations assumed by the tenant. Failure to comply with this term will generate a legal interest established in article 36 of the Urban Leases Law.
Is expert advice necessary?
When it comes to real estate issues, the regulation is very clear. In Alicante, there are many provisions that guarantee both the tenant’s and the landlord’s rights. Don’t you know them? That does not matter; the professional and experienced team of Carlos Baños León Abogados is expert in Real Estate Law and can advise you efficiently on the matter.
