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Security deposit, common expenses, utilities: What do these terms mean in a lease agreement?
How much should the security deposit be, when is it returned, and who pays the common expenses and utilities? We’ve summarized what should be included in the lease agreement and where it matters whether the tenant is an EU or non-EU citizen.
Security Deposit
The security deposit serves as a guarantee in case the tenant causes damage or leaves outstanding debts. It is not part of the rent. The amount is determined by the parties and is typically equivalent to 1–3 months’ rent. If the security deposit agreed upon exceeds three times the monthly rent, the tenant may ask the court to reduce the excessive amount (Civil Code § 6:343).
At the end of the lease, the security deposit is refunded; actual damages and outstanding balances may be deducted, but normal wear and tear is not considered damage. Tip: When moving in, have a move-in inspection report with photos, and include the refund deadline in the lease agreement.
Common Expenses (Condominium Fees)
In a condominium, the apartment owner pays the condominium association (for maintenance, cleaning, the elevator, and the renovation fund). The lease agreement specifies whether the landlord covers these costs (included in the rent), the tenant pays them separately, or the tenant pays only a portion of them. Include the amount and specify what happens in the event of a change.
Utilities (utility bills)
Electricity, gas, water, heating, internet, and trash collection. Generally, the tenant pays based on usage, but this is also a matter of the lease agreement. When you move in and when you move out, write down the meter readings and take photos of them, and discuss whose name the utility contracts will remain under.
Does it matter whether the tenant is an EU citizen or a non-EU citizen?
The security deposit, common area fees, and utilities are the same for everyone. The difference lies in the official paperwork, which requires the landlord's assistance.
EU (EEA) citizen
- For stays exceeding 90 days (within 180 days), you must apply for a registration certificate from the immigration authorities.
- The application must specify the legal basis for the address: ownership or a statement of consent from the owner. As the landlord, you must therefore sign this.
- The residence card (the official document certifying one's address) is issued automatically after registration, unless the tenant opts out.
Non-EU (third-country) citizen
- To obtain a residence permit, you must provide proof of housing: a lease agreement, a copy of the title deed issued no more than 30 days ago, proof of paid accommodation, or, if applicable, a notarized statement from a family member.
- A requirement for housing is that each person must have at least 6 m² of living space (in exceptional cases, the authorities may grant an exception).
- You must report a change of address, attaching a copy of your lease agreement (this is not required for certain types of permits, such as the EU Blue Card or student permits). This is why it is important to have a standard, written lease agreement and for the landlord to be able to provide a current copy of the property title deed.
Registering Your Address at the Government Service Center
Anyone who registers their address at the government service center must provide either the landlord’s signature on the address registration form or a contract authorizing the use of the apartment that is a private document with full probative value (e.g., notarized by an attorney). In the latter case, the landlord does not need to be present.
Important Information
This article is for informational purposes only and does not constitute legal advice. Regulations are subject to change; in specific cases, please consult a lawyer or the relevant authority.