Administration Costs
A fee charged for administrative actions, which is almost always illegal when levied on a tenant by a landlord's agent.
An Illegal and Unenforceable Fee
In the Netherlands, the term 'key deposit' is most commonly associated with sleutelgeld (literally 'key money'), and it is crucial for every tenant to know that this practice is strictly illegal. Sleutelgeld is a one-time, non-refundable sum of money demanded by a landlord, property manager, or previous tenant simply for the act of handing over the keys to a rental property. It is not a security deposit (borg) for damages; it is an unjust fee charged for nothing more than the 'goodwill' of allowing you to rent the apartment. Dutch law is unequivocal on this point: charging sleutelgeld is prohibited. It is considered an 'unreasonable advantage' and is legally unenforceable. No tenant is ever legally obligated to pay it.
'Sleutelgeld' vs. 'Borg' (Security Deposit)
It is vital to distinguish sleutelgeld from a legitimate security deposit (borg). Security Deposit (Borg): This is a refundable sum of money paid at the start of the tenancy to cover any potential damages to the property caused by the tenant. The amount is legally capped (typically at 1 or 2 months' basic rent), and it must be refunded at the end of the tenancy, minus any legitimate, documented costs for repairs. Key Money (Sleutelgeld): This is a non-refundable, under-the-table fee demanded just to get the keys. It offers no security and is not linked to any service or potential damage. It is, in effect, a bribe. Some unscrupulous landlords may try to disguise sleutelgeld by calling it a very high, non-refundable 'administration fee' or 'contract fee', which is also illegal.
The Tenant's Dilemma and How to Act
The difficulty for tenants is that in a tight housing market, they may feel pressured to pay sleutelgeld to secure a much-needed home. If you are in this position, here is the recommended course of action: 1. Do not pay in cash. Always pay via a bank transfer that can be traced. 2. Use a clear description. In the payment description of the bank transfer, explicitly write "Sleutelgeld [your new address]". This creates irrefutable proof of what the payment was for. 3. Secure your tenancy. Sign the contract and get the keys. 4. Reclaim your money. Once you are living in the property, you can start legal proceedings to reclaim the sleutelgeld. Because it is an illegal fee, you have a very strong legal position, and courts will almost always order the landlord to refund the full amount. You can seek help from the Juridisch Loket (Legal Desk) or the Huurcommissie (Rent Tribunal) to start this process.
