It is now common practice for tenants to pay a deposit of 1-2, sometimes 3 months' rent to the landlord at the time of signing the tenancy agreement, but no later than the time of taking possession of the property. But what is a deposit for?
In a tenancy agreement, the landlord takes possession of the dwelling, the tenant uses it and in return pays the landlord rent and the costs (commonly known as rent) arising from the use of the dwelling. However, this is not the tenant's only obligation: the tenant is also liable for other costs or damages arising from the use of the property, typically those set out in the contract, which are intended to maintain the property in good condition. The security deposit is intended to ensure that in the event of the tenant failing to meet any payment or repair obligations under the contract or by law, the landlord will use the security deposit to settle these obligations. In practice, this mainly means non-payment of rent, overheads by tenants, damage to the property or even failure to vacate the property. However, a deposit may also be required for other breaches of contract by the landlord, such as early termination of a fixed-term lease, if the parties so agree. The security deposit can be paid into the landlord's hand, or it can be deposited with a lawyer. The parties can agree on the fate and use of the deposit in a wide range of ways.
The deposit may be used by the landlord during the lease, in which case the tenant is obliged to return the deposit (re-delivery of the used part of the deposit), or at the end of the lease. If the rental contract is terminated and the parties have performed their contractual obligations, the security deposit shall be returned to the lessee in full and without interest.
Barbara Markovics
ügyvéd, közgazdász, ingatlanközvetítő
Have a question? Click and contact us, we will be happy to help!
English 
Hungarian