Security deposit (kauce) for a flat lease in Czechia: how much and when it is returned
At most three months' rent including contractual penalties, interest on the deposit and its return when the lease ends. Overview under Section 2254 of the Czech Civil Code.
The deposit is usually the largest sum a tenant and landlord hand over — and the most common cause of disputes at move-out. Yet all it takes is a few clear rules, written correctly into the contract.
A security deposit (jistota, colloquially kauce) is a sum of money the tenant gives the landlord as security for paying rent and meeting other obligations under the lease. The Czech Civil Code (Act No. 89/2012 Coll., “OZ”) regulates it in Section 2254; terms that curtail the tenant's rights are disregarded (Section 2235(1) OZ).
How much the deposit may be
- The deposit and contractual penalties together may not exceed three times the monthly rent (Section 2254(1) OZ).
- Example: rent of CZK 15,000 a month → the deposit and all contractual penalties together at most CZK 45,000. If a deposit of CZK 45,000 is agreed, nothing is left for contractual penalties.
- Apart from rent and payment for services, the landlord may not demand other payments from the tenant, whether as a deposit or otherwise (Section 2251(2) OZ).
Interest on the deposit
The tenant is entitled to interest on the deposit from the day it was paid, at least at the statutory rate (Section 2254(2) OZ).
Return of the deposit when the lease ends
When the lease ends, the landlord returns the deposit, setting off anything the tenant owes under the lease (Section 2254(2) OZ) — for example unpaid rent or compensation for damage to the flat; the tenant is not liable for normal wear and tear from normal use (Section 2293(1) OZ). To avoid disputes about the amount, it helps to:
- draw up a handover protocol with meter readings and photos both on moving in and on returning the flat,
- state clearly in the contract the amount of the deposit, how it is paid and the account for its return,
- pay the deposit by bank transfer, not in cash without a receipt.
The most common mistakes
- Deposit plus contractual penalties together exceeding three times the monthly rent (Section 2254(1) OZ).
- No handover protocol — at move-out it is impossible to prove the condition of the flat at move-in.
- The deposit handed over in cash without a written receipt.
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