When a tenant moves in, the landlord has the option of demanding a deposit of an amount equivalent to a maximum of 3 months’ rent, excluding any instalments for utilities. The deposit is the landlord’s guarantee that painting and any repairs can be carried out when the tenant vacates the property again.
The deposit can only be reclaimed once the tenant has vacated the property and the landlord has settled any claims for repairs. The Danish Rent Act does not specify a deadline for the landlord as to when the deposit must be returned, but in most cases, it will be within 1-2 months after the tenant has moved out. Otherwise, the tenant has the option to complain to the Rent Tribunal if the landlord does not respond.
In addition to the deposit, the landlord also has the option to demand up to 3 months’ rent in advance upon moving in, but not for more months than the length of the notice period. The prepaid rent is the landlord’s security that the landlord will receive payment of rent during the notice period. If the prepaid rent is not used during the notice period, the prepaid rent will be refunded in connection with the return of any excess deposit.
In addition, the landlord can require the tenant to pay the first month’s rent before moving in. In total, the landlord in some cases can demand an amount equivalent to 7 months’ rent when a tenant moves in.