Can my landlord withhold my security deposit to cover outstanding utility costs?
September 19, 2023 | 50,00 EUR | answered by Simon Büchner
Dear lawyer,
I am contacting you with the following question: Is my landlord allowed to withhold my security deposit to cover outstanding utility costs?
Background information:
I am a tenant in an apartment in a multi-family building. Since moving in, I have regularly paid my rent and utility costs on time. However, recently I received a utility bill in which my landlord is claiming amounts for outstanding utility costs. He alleges that the security deposit can be withheld to cover these outstanding amounts. I am unsure, however, if this is legally permissible.
Current situation:
My landlord has not yet specifically announced that he will withhold the security deposit to cover the outstanding utility costs. However, he is pressuring me to pay the outstanding amounts promptly. I feel uncertain in this situation and would like to know if my landlord actually has the right to use my security deposit to cover outstanding utility costs.
Concerns:
I am concerned that my landlord may withhold the security deposit to cover the outstanding utility costs. This would mean that in the event of moving out at the end of my tenancy, I would receive less or even no security deposit refunded. This financial uncertainty is weighing on me, and I would like to clarify what my rights as a tenant are in this situation.
Question:
Is my landlord allowed to withhold my security deposit to cover outstanding utility costs? If so, what options do I have as a tenant to defend myself and protect my security deposit?
I thank you in advance for your professional advice and support.
Kind regards,
Jessica Rapp
Dear Mrs. Rapp,
Thank you for your inquiry regarding the use of your security deposit to settle outstanding utility costs by your landlord. This question falls within the realm of civil law, and I will now explain in detail the legal basis that needs to be considered in this matter.
In a rental agreement, the security deposit serves as a guarantee for the landlord to cover potential damages or outstanding debts at the end of the tenancy. However, the landlord cannot arbitrarily use the security deposit to settle outstanding utility costs or other debts. This is only possible under certain conditions and in a regulated procedure.
The landlord is only allowed to retain the security deposit if there are actual claims against the tenant that can be covered by the deposit. This requires that the outstanding utility costs have been legally and clearly claimed. A blanket offsetting of the security deposit against outstanding debts is not permissible. The landlord must provide the tenant with a detailed statement of the outstanding amounts and prove that they are indeed justified.
If your landlord still tries to retain your security deposit to settle outstanding utility costs, as a tenant you have various options to defend yourself. You can first insist in writing and with evidence to your landlord that the security deposit is to be used solely for its intended purpose, which is as security for potential damages. If your landlord still unlawfully withholds the security deposit, you can take legal action and involve a lawyer, for example.
In any case, I recommend documenting all communication with your landlord in writing and keeping all documents, especially the utility cost statement and the rental agreement, carefully. This way, in case of a dispute, you can effectively defend your rights as a tenant and potentially enforce your right to a refund of the security deposit.
I hope that this detailed response has been helpful. If you have any further questions or need legal assistance, I am at your disposal.
Sincerely,
Simon Büchner
