Many tenants are losing significant sums due to a little-known regulation requiring rental deposits to be returned based on current rent rates rather than original contract amounts.
Legal Limits on Rental Deposits
A rental deposit is a refundable fee used to secure the landlord’s interests against potential damages, unpaid rent, or other breaches of contract. According to the Act of June 21, 2001, on the protection of tenants’ rights, a landlord cannot set a deposit exceeding 12 times the monthly rent.
The 30-Day Return Deadline
Landlords are required to return the deposit within one month of the tenant vacating the premises or the tenant acquiring ownership. Failure to meet this deadline entitles the tenant to claim interest for late payment. Legal counsel Hanna Górska from Law City notes that these claims are civil law matters that can be pursued in a common court.
The Mandatory Indexation Mechanism
Contrary to popular opinion, a deposit should not be returned at the same amount paid on the day the lease was signed. It must correspond to the current rent rate to protect tenants from losing the money’s value. If the rent has increased during the tenancy, the landlord must return a proportionally higher amount.
The calculation is based on two factors: the rent multiplier established in the original lease and the current rent rate on the day of the return. The resulting amount cannot be lower than the actual deposit originally paid.
Practical Calculation Example
If a deposit was set at four times a monthly rent of 3,000 PLN, and the rent has since risen to 7,000 PLN, the amount due for return is 28,000 PLN, minus any outstanding tenant obligations.