Deposit and prepaid rent: the rules

The deposit is one of the most frequent sources of conflict in Danish tenancies. Tenants lose thousands of kroner every year, either because they do not know the rules, or because the landlord deducts amounts they are not entitled to. Landlords, on the other hand, risk being left with unpaid rent and damaged fittings if they do not handle the deposit correctly from the start.

This guide runs through the rules from the ground up: what a deposit and prepaid rent are, what the landlord may lawfully demand, when the money must be repaid, and what to do if things go wrong.

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What are a deposit and prepaid rent?

The two concepts are often confused, but they are legally very different:

A deposit is an amount you pay as a tenant on moving in, as a kind of security. The money belongs to you, it is merely deposited with the landlord as a guarantee that you will hand back the property in proper condition and pay the rent you owe. When you move out, the landlord must repay the deposit, minus lawful deductions.

Prepaid rent, by contrast, is rent you pay in advance, typically for the last one to three months of the tenancy after notice has been given. The amount is used to cover the rent during the notice period. It is therefore not a security in the same way as a deposit.

Both amounts are governed by the Tenancy Act (lejeloven), and there are clear limits on how much the landlord can demand.

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Deposit, maximum amounts: what may the landlord demand?

The Tenancy Act sets clear ceilings on what the landlord can charge on move-in:

• Deposit: a maximum of 3 months' rent
• Prepaid rent: a maximum of 3 months' rent

The rent here is calculated as the pure housing rent, on-account amounts for heating, water and electricity are not included in the basis of calculation.

This means that on moving into a property at, for example, DKK 8,000 a month (excluding utilities), up to the following can be demanded:

• Deposit: DKK 24,000
• Prepaid rent: DKK 24,000
• In total: DKK 48,000 on top of the current month's rent

If the landlord demands more than that, it is unlawful. You have the right to demand the excess back, and the rent tribunal (huslejenævnet) can order the landlord to repay it.

Tip: Make sure your tenancy agreement clearly states both the deposit and the prepaid rent as separate items with amounts.

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When must the deposit be repaid?

The Tenancy Act does not state a precise deadline for repayment of the deposit, but it follows from the general duty to act within a reasonable time. In practice this normally means within a few weeks of moving out, once the reinstatement has been settled.

Repayment takes place once the landlord has:

1. Held a move-out inspection and issued a move-out report
2. Calculated any reinstatement costs
3. Settled any utility meters
4. Deducted any rent arrears

The landlord should send an itemised move-out statement showing what is being deducted and what is repaid. It is not enough to write "reinstatement DKK 10,000" without documentation of what the money covers.

It is important to note that prepaid rent is not repaid in the same way as a deposit. It is used to cover the rent during the notice period. If you move out before the end of the notice period, the landlord has a duty to try to re-let, and if the re-letting succeeds, you are entitled to a refund for the period the property is re-let.

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What may the landlord deduct from the deposit?

This is where many disputes arise. The landlord can only set off against the deposit for specific costs:

Lawful deductions

• Reinstatement of defects: damage that goes beyond normal wear and tear
• Lack of cleaning: a property handed back in a significantly worse cleaned condition than on move-in
• Unpaid rent arrears: rent owed on the move-out date
• Utility arrears: outstanding amounts on the heating, water or electricity account
• Lack of notice: rent for periods where the tenancy has not been terminated correctly

Unlawful deductions

• Normal wear and tear: floors that wear a little over the years, paint that yellows, wallpaper that fades. That is normal wear and never the tenant's bill
• Maintenance the landlord is responsible for: for example interior painting, if the contract does not impose this on the tenant
• Improvements: the cost of putting the property in a better condition than on move-in

A good rule of thumb: the landlord can require the property to be handed back in the same condition as on move-in, adjusted for normal wear. Not better. Not worse.

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Move-in and move-out reports: your most important protection

The move-in and move-out reports are crucial documentation in a deposit dispute. There is, however, an important limitation: the statutory duty to hold inspections and prepare reports (and the consequences of failing to do so) applies only to landlords who rent out more than one dwelling. If you rent out only one property (for example in many parental-purchase arrangements), you are not covered by this duty, but it is still strongly recommended to document the condition of the property thoroughly.

The move-in report

A landlord who rents out more than one dwelling must hold a move-in inspection and prepare a move-in report. If the tenant is not present at the inspection, or will not acknowledge receipt, the report must be sent to the tenant no later than 2 weeks after the inspection.

The report documents the condition of the property at handover, and this is precisely where many disputes begin. Damage not noted in the move-in report risks being pinned on the tenant on move-out.

As a tenant you should:

• Attend the move-in inspection and take an active part
• Insist that all faults and defects are noted, even the smallest
• Photograph everything: scratches, damage to appliances, cracks in the ceiling, worn parquet
• Ask for a copy of the report and add written comments if you disagree

The move-out report

The same applies on move-out for landlords with more than one property. The landlord must:

• Give notice of the move-out inspection at least 1 week in advance
• Hold the inspection and prepare a move-out report
• Hand over the report at the inspection, or send it no later than 2 weeks afterwards if the tenant is not present or will not acknowledge it

The move-out report is compared with the move-in report. Only damage and defects that do not appear in the move-in report, and that exceed normal wear, can be deducted from the deposit.

Important: If the landlord is covered by the duty (more than one property) and does not hold a move-out inspection, or does not send the report within the deadline, the landlord as a rule loses the right to make reinstatement claims against the deposit.

See also our guide to the move-out report for a complete walkthrough of the process.

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What do you do if the landlord does not repay?

If an unreasonable amount of time passes and you have not heard from the landlord, or you disagree with the deductions, you have several options:

1. Written approach to the landlord

Start by sending the landlord a written demand with a reasonable payment deadline. Keep all communication in writing, email is fine.

2. The rent tribunal

If the landlord disagrees or does not respond, you can bring the case before the local rent tribunal (huslejenævnet). It is cheap (complaint fee DKK 367 in 2026), relatively quick and a low-threshold complaints body.

The rent tribunal handles, among other things:

• Disputes about repayment of the deposit
• Disagreement about reinstatement deductions
• Questions of normal wear versus damage

If you as a tenant fully succeed, the landlord must pay a separate fee to the tribunal (DKK 7,027 in 2026).

See our guide to complaining to the rent tribunal for step-by-step guidance.

3. The bailiff's court / housing court

If the landlord does not comply with the rent tribunal's decision, the decision can be enforced. The rent tribunal's decision can also be brought before the housing court by either party within 4 weeks. For commercial leases, where the rent tribunal has no jurisdiction, the courts are the route from the start.

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Deposit in parental purchase and subletting

Special considerations apply in these two situations:

Parental purchase

In a parental purchase, where parents buy a flat and rent it out to their child, there is formally a tenancy. The Tenancy Act applies in principle, but many parental-purchase tenancies lack a proper tenancy agreement and deposit arrangement. Note that a landlord with only one property is not covered by the statutory inspection regime, but a written contract and good documentation are still important, both for tax and legally, when the child moves out. Always make sure to draw up a proper written tenancy agreement, including for a parental purchase.

Subletting

If you sublet your flat or a room, you act as a landlord towards the subtenant. You are responsible for complying with the Tenancy Act's rules, including the limits on deposit and prepaid rent.

Your total charge to the subtenant (deposit + prepaid rent) may not exceed 6 months' rent. If this is not observed, the subtenant can demand the excess back.

See our guide to terminating a tenancy as a tenant for more on the rules on moving out and subletting.

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Checklist: avoid deposit disputes

Use this list, whether you are a tenant or a landlord:

On move-in:

• Draw up a written tenancy agreement with an itemised deposit and prepaid rent
• Hold a move-in inspection and prepare a report (if you rent out more than one property)
• Photograph the condition of the property thoroughly
• Send the report no later than 2 weeks after the inspection if the tenant is not present
• The tenant reads it through and adds any comments

On move-out:

• Give notice of the move-out inspection 1 week in advance (if covered by the duty)
• The move-out report is handed over at the inspection or sent no later than 2 weeks after
• An itemised statement of deductions is sent to the tenant
• Repayment takes place within a reasonable time

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Frequently asked questions about the deposit

What is the maximum deposit a landlord may demand?

The landlord may demand at most 3 months' rent as a deposit and 3 months' rent as prepaid rent, that is, up to 6 months' rent excluding utilities, on top of the current rent on move-in.

When must the deposit be repaid?

The Tenancy Act does not state an exact deadline, but it must take place within a reasonable time after move-out, once the landlord has settled any deductions. The landlord should send an itemised move-out statement.

Can the landlord deduct for normal wear and tear from the deposit?

No. Normal wear is never the tenant's responsibility. Only actual damage and defects beyond what has happened through normal use over time can be deducted from the deposit.

What is the difference between a deposit and prepaid rent?

A deposit is a security that belongs to the tenant and must be repaid minus lawful deductions. Prepaid rent is advance payment of the rent for the notice period and is used to cover the last months.

What do I do if the landlord does not repay my deposit?

Start with a written demand. If the landlord does not respond, you can complain to the local rent tribunal for DKK 367 (2026 rate). The rent tribunal can order the landlord to repay the amount.

Can the landlord demand a deposit on subletting?

Yes, but the total deposit + prepaid rent can be at most 6 months' rent. If this is exceeded, the subtenant is entitled to have the excess repaid.

Is there a duty to hold a move-out inspection?

For landlords who rent out more than one dwelling, yes. They must give notice of the move-out inspection at least 1 week in advance and hand over or send the move-out report no later than 2 weeks after. If they do not, the landlord as a rule loses the right to make reinstatement claims. Landlords with only one property are not covered by this duty.

What happens to the deposit if the landlord sells the property?

The deposit follows the tenancy, not the landlord. The new owner takes over the obligation to repay the deposit on move-out. Make sure you have documentation of the amount paid.

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Conclusion

The deposit and prepaid rent are a fixed part of every Danish tenancy, and the rules are clear once you know them. A maximum of 3 months' rent as a deposit, an itemised move-out statement, and only lawful deductions for actual damage.

The best prevention is a properly drawn-up tenancy agreement, thorough documentation on move-in and move-out, and knowledge of the rent tribunal as a low-threshold complaints body.

See also:

• Tenancy agreement guide for landlords
• Move-out report guide
• Complaining to the rent tribunal
• Terminating a tenancy as a tenant

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The content of this article is for guidance only and does not constitute legal advice. Consult a lawyer or a tenants' organisation for advice on your specific situation.