The rental security deposit is another legal figure that is included in rental contracts.

Rental security deposit: Features

Article 36 of the Ley de Arrendamientos Urbanos 2/1994 refers to the srental security deposit, stating that the parties may agree on any type of guarantee for the fulfilment of the tenant’s obligations, in addition to the rental mandatory deposit or “Fianza”.

Deposit amount

The amount of the rental security deposit will be agreed between the parties and will almost always depend on the customs of the city in which the property is located. In Madrid it is usually one or two months’ rent.

At DFLAT Madrid we know from experience that for temporary contracts of 12 months or less, the amount of 1 monthly deposit + 1 monthly deposit is appropriate and sufficient, but for contracts of permanent housing or rentals of more than three years, it seems insufficient and risky.
It must be paid only once at the beginning of the contract and remains in the hands of the owner. Such a clause must be included in the contract, with the exact amount to be paid as a deposit.

Refund of deposit

Like the rental mandatory deposit “fianza”, the amount paid as a rental security deposit will be refunded to the tenant at the end of the tenancy, unless one of the following conditions applies:

  • Early termination of the contract
  • Outstanding amounts or debts (rent or utilities)
  • Failure to maintain the property in the same condition as originally signed for

It is often thought that rental security deposit “depósito” and mandatory deposit “fianza” are the same thing, but this is not the case, although they are similar in some ways.
For this reason, we recommend that you read this article on the difference between a mandatory and security deposit.

What extra security does DFLAT Madrid offer?

DFLAT accommodates executives, diplomats and expatriates, as well as high quality masters students, and the rate of problems and non-payments is practically non-existent.

We market our apartments through corporate HR departments, B2C channels, B2B, moving agencies, relocation, travel and our own channels and we have an extensive portfolio of stable clients.
Visit our corporate apartments or student apartments. Contact us if you are an investor or property owner in Madrid, looking for a property manager specialist.