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  1. Resources
  2. Glossary
  3. Rental Costs
  4. Security deposit
Rental Costs

security deposit

Dutch term

borgsom

A security deposit is a sum held by the landlord to cover damages or unpaid rent.

At a glance

Category
Dutch term
borgsom
Last updated
August 2025

On this page

  • Full explanation
Table of Contents
DefinitionDutch Market Specifics

Table of Contents

DefinitionDutch Market Specifics
Related terms

More terms from Rental Costs

Terms from the same part of the rental process, so you can read them together instead of looking each one up separately.

See Terms

A fee charged for administrative actions, which is almost always illegal when levied on a tenant by a landlord's agent.

An administrative fee, often called 'contractkosten' or a lease initiation fee, is a charge for drawing up the rental agreement, the legality of which is highly questionable.

'Leges' are administrative fees charged by government bodies for providing a specific service or processing an application.

An agency fee, also known as a broker fee or 'courtage', is a charge for real estate brokerage services which, by law, cannot be charged to a tenant if the agent is working for the landlord.

An alarm system fee is a recurring cost for professional monitoring, and responsibility for payment depends on what is agreed in the rental contract.

Paying residential rent annually is not a standard practice in the Netherlands; the law and market are based on monthly payments.

Confirm Eligibility Rules, Financial Consequences, and Current Rules for Security Deposit

The practical relevance of Security Deposit becomes clearer when exceptions, costs, and authority are separated.

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Definition

A security deposit is a financial guarantee provided by the tenant to the landlord at the start of a tenancy, intended to secure performance under the lease. Its primary purpose is to cover potential damages beyond normal wear and tear, unpaid rent, or other lease violations that may arise during or at the end of the tenancy. Standard practice dictates that the deposit is held in a separate account or escrow and returned to the tenant within a set timeframe after the lease terminates, minus any lawful deductions. The amount typically ranges from one to three months’ rent, defined by jurisdictional statutes and market norms. Disputes over security deposit deductions are common, often requiring documented evidence such as move-in/move-out inspection reports and photographic proof. Failure by landlords to return the deposit in compliance with legal requirements can lead to penalties, including the tenant’s right to recover double or triple the withheld amount.

Dutch Market Specifics

In the Netherlands, security deposit regulations are codified in the Dutch Civil Code (Burgerlijk Wetboek). Landlords may request a maximum of two months’ rent as a deposit, which must be placed in a designated escrow or savings account. Dutch law mandates that the deposit be returned within one month after the end of the tenancy, unless valid claims for damages or arrears are substantiated. Any rightful deductions must be itemized, and tenants have the right to challenge disputes through huurcommissie (rent tribunal) or the civil courts. The Dutch emphasis on transparent deposit handling is part of broader tenant protection measures, aimed at preventing exploitative practices and ensuring fair outcomes. Given the growing prevalence of digital banking, many landlords now automate deposit escrow arrangements to ensure compliance and build trust with tenants.

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