The deposit and set-off in tenancy law
Landlord retains deposit after incident in residential building
The tenant rented a non-self-contained residential unit in Utrecht from TW De Ravel B.V. from October 2020 until May 2025. At the outset she paid a €400 deposit; on an internal move to another room a further €194 was added. After the tenancy ended, De Ravel refused to repay the total deposit of €594.
The reason: an incident on 27 March 2025. De Ravel set the deposit off against the time spent — staff hours — that employees of building manager Gold Groep and of De Ravel itself had devoted to handling that incident. Both parties had their own account of what had happened that evening, but the subdistrict court expressly leaves the factual circumstances open.
Subdistrict court: staff hours are not repair costs to the leased property
Section 7:261b DCC limits what a landlord may use the deposit for: solely demonstrable costs for repairing damage to the leased property and payment arrears. A further condition is that the landlord must notify the tenant of this in writing, with a full breakdown of the costs.
The staff hours put forward by De Ravel do not fit within that framework. They did not concern physical repair of the residential unit, nor did they concern rent arrears — they were internal personnel costs for handling an incident. De Ravel argued that the deposit also covers damage arising from a failure on the tenant's part, but the subdistrict court holds that this is precisely not what Section 7:261b DCC provides.
De Ravel's reliance on Section 9(1) of the tenancy agreement — which would allow broader set-off — did not assist it either. Section 7:261b DCC is mandatory law by virtue of Section 7:265 DCC: departure to the tenant's detriment is not permitted, regardless of what the contract says.
What does this mean for landlords of residential accommodation?
This judgment confirms that the statutory list in Section 7:261b DCC is exhaustive. Landlords who wish to draw on the deposit for something other than physical damage to the leased property or unpaid rent will have to claim this through separate proceedings — not by way of set-off against the deposit. Contractual provisions allowing broader set-off are null and void in so far as they depart from the mandatory-law standard. De Ravel was ordered to repay the full €594, together with statutory interest from 15 May 2025, plus €89.10 in extrajudicial collection costs and €708.35 in costs of the proceedings.
It is a modest claim, but its reach in principle is broad. Many landlords use similar deposit provisions that go further than the law permits. See also the analysis of the rental clause and tenant protection and our Commercial Litigation expertise.
Frequently asked questions
What may a landlord use the deposit for?
Section 7:261b DCC restricts set-off to two categories: demonstrable costs for repairing damage to the leased property and the tenant's payment arrears. Other heads of loss — such as personnel costs, legal costs or loss of income — do not fall within this and may not be set off against the deposit.
Can a tenancy agreement extend the set-off options for the deposit?
No. Section 7:261b DCC is mandatory law (Section 7:265 DCC). Contractual provisions giving the landlord broader set-off options than the law allows are null and void in so far as they depart from it to the tenant's detriment. The landlord in this case relied on a contractual clause in vain.
Within what period must a landlord repay the deposit?
The law does not prescribe an explicit period, but the landlord must repay the deposit after the tenancy ends, less any permitted set-offs. If it fails to do so, statutory interest accrues and it risks an order to pay extrajudicial collection costs and the costs of the proceedings, as in this case.
District Court Midden-Nederland 25 February 2026, ECLI:NL:RBMNE:2026:855.
Cited case law
District Courts: ECLI:NL:RBMNE:2026:855
See also
- Rental and lease law
- Rental clause does not hold up against tenants who preceded the mortgage
- Court of appeal corrects allocation of payment and limits enforcement of a penalty clause in a tenancy agreement
- Remotely managed B&B: rescission and no relocation allowance
- Real Estate & Construction — more on this area of law