Who pays security deposit interest in France
As a tenant in France, you often wonder whether you are entitled to interest on the security deposit and who, the tenant or the landlord, should receive it. Rules depend on the type of contract and the rental period, and the law governs the return of the deposit as well as any interest. This article clearly explains when interest is due, how it is calculated, what steps to take to claim it, and which documents to keep. We also indicate possible remedies, including the departmental conciliation commission and the judicial court, citing relevant official texts to help you act with confidence.
Who receives interest on the security deposit?
The question mainly depends on three elements: whether the deposit was placed producing interest, the clauses of the rental contract and the applicable legal rules.[1] If the deposit was placed in an interest-bearing account, the interest produced may be owed to the tenant, unless a specific and permitted provision applies. In case of disagreement, a judge or a Commission can decide based on the evidence provided.
Common situations
- The deposit was placed in an interest-bearing account: interest appears and, absent a contrary clause, belongs primarily to the tenant.
- Delay in returning the deposit beyond legal deadlines may give rise to interest claims in favor of the tenant.
- A contract clause may specify the fate of interest, but it must not contravene applicable legal provisions.
- Availability of bank statements and receipts helps verify whether the deposit produced income.
How are interest amounts calculated?
The calculation depends on the rate applied to the placement and the duration during which the deposit produced interest. A simple formula uses simple interest: principal × annual rate × duration (in days) / 365. If the landlord actually placed the deposit and received interest, this calculation serves as a basis to estimate the amount owed to the tenant.
FAQ
- Does the landlord have to pay the deposit interest?
- If the deposit produced interest or if the law or a judgment requires it, the landlord may have to return it to the tenant; otherwise, the regime will depend on lease clauses and proof of income produced.[1]
- How to calculate interest?
- Generally, we use the formula: principal × annual rate × duration (in days) / 365. Example: for €500 at an annual rate of 1% for 180 days, interest is about €2.47.
- What is the deadline to claim interest or the deposit return?
- Deadlines for returning the deposit are governed by regulations: when the exit inventory shows no deduction, return is quick; in case of deduction or dispute, the deadline may be extended. In case of dispute, it is possible to approach the departmental conciliation commission or the judicial court.[2]
How to
- Gather evidence: rent receipts, bank statements and entry and exit inventories.
- Contact the landlord to request details of any interest received and proposed deductions.
- Send a registered letter with acknowledgment of receipt asking for the return and calculation of interest.
- If the response is insufficient, contact the departmental conciliation commission to attempt an amicable solution.
- As a last resort, bring the case before the judicial court for a binding decision.
Key points
- Keep all documents related to the deposit and payments.
- Respect deadlines and act quickly if the deposit return is late.
- Favor conciliation before judicial procedure.
