Student room deposit: amount, form and return

How much can the deposit for a student room be?

For a student rental agreement the deposit is at most two months' rent, calculated without the costs for consumption of water, energy and telecommunications. That maximum covers everything: a separate key or badge deposit on top of those two months is not allowed. Lost or unreturned keys can, however, be settled against the regular deposit.

You may ask for the deposit no earlier than three months before the start date of the contract. If you sign a contract in spring that starts in September, you can only have the deposit provided from June onwards.

A deposit is not mandatory. The decree says the student can provide a deposit; whether you ask for one and how much, within the maximum, is set out in the rental contract. What else that contract must contain is explained in our guide on the student room rental contract.

Which forms of deposit are allowed?

For student leases the decree provides two forms: a sum of money or a security interest (zakelijke zekerheidstelling) with a financial institution in the student's name. If you opt for a sum of money, there are two options:

• Blocked account in the student's name (an individual rental deposit account at a bank). The interest goes to the student and you get a preferential right on the balance for anything the student might owe you.
• Account of the landlord. This is allowed for student leases, but then you must pay interest at the average market rate when returning it.
• Not allowed: handing over the deposit in cash.

Difference with a regular rental home

Leases for a main residence follow different rules: there the deposit is at most three months' rent and the tenant chooses between an individual account, a security interest or a bank guarantee under a standard contract between a public social welfare centre (OCMW) and a financial institution. In a student lease the student has no such choice: you agree on the form together and it must be stated in the contract. The OCMW bank guarantee is not part of the student lease rules.

Note: if a student registers their domicile at the room with your consent, the contract falls under the rules for main residences and those other deposit rules apply. Read our guide on domicile in a student room.

Interest on the deposit

If the deposit is in a blocked account in the student's name, the interest earned is capitalised for the benefit of the student. You do not need to calculate anything yourself: the bank pays out the balance with interest when the deposit is released.

If the deposit is in your account, you owe interest at the average rate of the financial market, from the moment the student paid the deposit. This interest is also capitalised. The Flemish housing agency (Wonen in Vlaanderen) offers a calculation tool on vlaanderen.be to work out the amount due. So keep an accurate record per room of the date and amount paid.

Return at the end of the lease

How the deposit is returned depends on where it is held.

If several students rent one home together and one of them leaves, there is no specific rule for that: in principle they rent and terminate together. If you agree otherwise by mutual consent, record it in an addendum. If the deposit account is in the name of several tenants, the Flemish government recommends first having the remaining tenants provide a new deposit and only then releasing the existing one.

• Blocked account: the bank only releases the money on the basis of a written agreement between both parties, drawn up no earlier than the end of the lease, or a court decision. Many banks have their own release form for this.
• Landlord's account: you return the deposit with interest within three months after the student has left the room, unless you dispute the return within that period by registered letter to the student.
• According to the FAQ of the Flemish housing agency, a literal reading of the decree requires that registered letter even if you have a written agreement with the student about a deduction. To be safe, always send it.

What can you deduct from the deposit?

The deposit secures the student's obligations. You can use it to settle unpaid rent, an outstanding balance from the consumption settlement and rental damage, among other things. You establish rental damage by comparing the move-out inspection report with the move-in report. Without a valid move-in report, the student is presumed to have received the room in the condition in which they return it, which makes damage hard to prove. See our guide on the student room inspection report.

Normal wear and tear, ageing and damage caused by force majeure cannot be charged. Costs for damage that was not repaired during the lease can be deducted on the basis of a quote or an expert's estimate. Costs you were not allowed to charge separately under the decree, such as a cleaning fee that was not included in the rent, cannot be recovered through the deposit either. If the damage exceeds the deposit, you must give the student formal notice and, if necessary, go to the justice of the peace.

If you charge consumption costs through advance payments, draw up a final settlement at the end based on actual costs and supporting documents. You refund any surplus to the student; a shortfall can be settled against the deposit. With a fixed flat fee there is no settlement afterwards.

Deposit disputes

If you disagree about the return, first try to reach a written agreement based on the inspection reports, photos and invoices. If that fails, the justice of the peace of the place where the room is located has jurisdiction, regardless of the amount. An arbitration clause in the rental contract is void. The justice of the peace always tries to reconcile the parties first.

The stronger your file, the faster such a dispute is resolved. A signed inspection report with dated photos, a clear list of repairs with their cost and a timely registered letter make the difference.

How to set up and track deposits

State in the rental contract which form you agree on, the amount and who opens the account. With a blocked account, the student, or someone on their behalf, opens that account at a bank in the student's name. Ask for the bank's confirmation that the deposit has been provided and keep it with the contract. If the deposit goes into your own account, use a clear reference per room and per tenant, so that when you return it you can immediately see when and how much was paid.

If you let several student rooms, you quickly manage dozens of deposits with different forms, amounts and end dates. A fixed routine prevents mistakes:

• Record per room: the form of the deposit, amount, bank or account, payment date and reference.
• Check that the amount does not exceed two months' rent and that you do not ask for it earlier than three months before the start.
• Keep the bank's confirmation that the deposit was provided together with the rental contract.
• At every contract end, schedule a reminder for the move-out inspection and for the three-month deadline.
• Calculate the interest in time if the deposit is in your own account.
• Document every deduction with the inspection report, photos and a quote or invoice.

How Kotmaster helps

Kotmaster keeps the rental contract, the inspection reports with photos and other documents per room together in central document management, so you have everything at hand when the lease ends. You create the digital inspection report with your smartphone at move-in and move-out, payments are followed up automatically, and bank integrations with KBC, Belfius, ING, Argenta and BNP Paribas, among others, show you what comes in. See the features or find out how landlords in Kortrijk and other cities organise their management.

This guide provides general information about the Flemish rules on deposits for student leases and is not legal advice. In a specific dispute, consult a lawyer or your landlords' association.