SHARE
COPY LINK
For members

PROPERTY

How to get your deposit back when renting in Denmark

Foreigners renting in Denmark frequently find that landlords unfairly keep their deposits. We asked Louise Song, co-owner of tenancy law specialists Digura, how to avoid this happening and what to do if it does.

How to get your deposit back when renting in Denmark
The street in Vesterbro where the VEGA music venue is situated. Photo: Thomas Lekfeldt/Ritzau Scanpix

It seems like a lot of people renting in Denmark have problems getting their deposits back. Why is this such a big issue here? 

It’s specifically a problem for international renters. They are often actually a target for landlords who see the deposit as a quick way to make more money, because, of course, international tenants don’t know what rights they have in Denmark. 

As an international in a foreign country, you are often more reluctant to seek legal help and also more inclined to trust your landlord, who is often a Danish citizen themselves, so if they say ‘this is how it is in Denmark’, you’re inclined to believe them.

Because they’re looking to make a quick buck,  the apartment, or maybe the room, they’re renting is often of a low standard, so tenants tend to move in and then move out really quickly, and then the landlord just keeps the deposit every time. 

READ ALSO: 

Do you have any sense of how often this happens? 

I would say maybe 50 percent or more of the cases we at Digura have with our international tenants are cases like these, where we have a landlord who is specifically targeting international tenants and keeping all of their deposits without any legal reason for it.

Is there anything you can do as a tenant to prevent this happening?

Well, under Danish Rent Act, there are separate rules for landlords who only rent out one tenancy and for landlords who rent out more than one tenancy.

If your landlord is only renting one tenancy — and tenancy is categorised per apartment, so if they are renting out multiple rooms in one apartment that is still only one tenancy — then the rules the landlord has to obey are not as strict. In these cases, it would be better to contact a legal representative, because it’s more difficult for tenant to catch the landlord. 

If you have more than one tenancy, you are technically classified as a professional landlord, and for professional landlords there are a set of rules they have to follow. For instance, when you move in they have to make a “move-in report”, and when you move out they have to make a “move-out” report.

When you move out, the landlord also has to invite you to an inspection of the tenancy, and there are also certain deadlines the landlord has to follow. If they don’t follow the deadlines, if they don’t give you one of these reports, you are in most cases entitled to a refund of your whole deposit.

These are set rules and not up for any kind of discussion, and if you mention that paragraph, the landlords usually comply. Specifically in regards to the moving-out report, it is paragraph 98 in the Danish Rent Act. 

Louise Song, who graduates this week in law from Aalborg University, is co-owner of Digura, and started working on rental disputes as part of the student-run legal aid charity Lejerens Frie Retshjælp.

What if they have done a moving out report, and then they’ve sat there and said, ‘this mark on the wall, you know, that wasn’t there before”, and then massively overcharges you for it? 

That’s also where we as legal representatives come in. I have had many cases where I have gotten a copy of the tenants’ correspondence with the landlord after they move out, where I can see that the tenant has been adamantly arguing with the landlord, explaining to them, and also maybe showing pictures proving that the tenancy was left in a nice condition, despite maybe one scratch on the wall, which in no way justifies the high bill. 

But a lot of landlords are used to getting their way by just staying stubborn, without engaging in any kind of fair discussion about the condition, they just stand their ground, or maybe even begin ignoring the tenant.

With the bigger landlords, we often see that if we as legal representatives step in, they are very quick to just settle the case with us. Usually, that’s because we have already won several cases against them in the Danish rent committee or maybe even the court, So they know we’re going to go all the way until we win, and it will just be cheaper for them in terms of legal costs to settle. 

But some of the smaller landlords, who maybe haven’t lost cases yet and are used to getting their way, we would have to bring the case before the Danish Rent Committee, and maybe later the court. 

And what can you do when both when you move in and when you move out, in terms of documenting the condition of the apartment to make it less likely that they can overcharge you?

First of all, the tenant has a right to send in a list of defects and deficiencies within two weeks from when they move in. And if they have sent this list in within the two-week deadline, according to the Danish Rent Act, you are not liable for any of the things you have listed. It’s also a great idea to take pictures of everything and anything really, both when you move in and when you move out.

And in regards to the moving out report, which professional landlords have to make, you have to keep in mind that you’re not obliged to sign it. We often see cases where either the tenant has believed that certain things were written in the report because the representative of the landlord explained the content to them, and then they later found out that they signed something they can’t agree to. 

We also see cases where the landlord just straight out lies to them and tells them that they are obligated to sign no matter what, which of course is damaging to the tenant’s case, because they are essentially agreeing to the content when they sign it.

So you should make absolutely sure that you read through the entire report, and if you don’t agree, don’t sign it? 

Yes, and the report is, unfortunately, usually in Danish. So if you can’t read Danish, just don’t sign it, or, right next to your signature, you can write, “I’m only signing this because I’m confirming that I received a copy, but I don’t agree to the content in any way”. 

Are there any particular companies or particular types of landlords who, who you end up seeing problems with again and again? 

We definitely see both smaller landlords and bigger landlords reoccurring. I myself have a private landlord who is only subletting an apartment. I think I have currently as my clients, maybe eight of his previous tenants, and because, unfortunately, he has been declared insolvent, it’s very difficult for us to extract any money from him. 

Also, with the bigger companies, we have unfortunately seen some companies who specifically market themselves as expat-friendly companies, and a couple of those companies are unfortunately only there to make money off expats as well. 

In terms of what is normal in Denmark, how many months’ rent is reasonable for landlords to ask as deposit? 

This is actually regulated in the Danish Rent Act. The deposit can never exceed what’s equivalent to three months of your rent, and that goes for the prepaid rent as well. So when you move in, you can usually expect to pay what’s equivalent to three month’s rent as a deposit, plus three month’s rent in prepaid rent, and then maybe also the first month’s rent. So you are essentially paying seven month’s rent when you move in. 

And if anyone asks for more than that, what can you do? 

If you have already paid it, it’s illegal for the landlord to keep it, so you just have to point that out to the landlord and then usually they would refund it, because the law is very clear on that, and if they need a bit of nudging, maybe you can contact a legal representative and they will send a more formal letter to the landlord

Are there any other charges that you can get hit with like cleaning fees in addition to the deposit? 

Landlords who rent only one tenancy usually just keep your whole deposit, while the bigger companies tend to overcharge you, sending you a large bill saying that “we have to pay everything, and we have to varnish the floors, and we’re going to claim the whole of all of your deposit”, and then also charge you maybe 10,000 kroner on top of that.

Is this a problem that there’s been in Danish rental apartments for decades?

It has been an issue for many, many years, and with new legislation, it has been increasingly more difficult for the landlord to overcharge the tenant. Before 2015, the landlord was actually allowed to renovate the apartment so that it is as good as new when a tenant moves out, while now, according to the Danish Rent Act, the landlord can’t charge for normal wear and tear.

What if you actually have trashed the apartment? I mean, presumably, the landlords aren’t always in the wrong? 

I would say it’s less than 1% of the cases we get. Our company, at least, doesn’t represent any tenants or any cases which we don’t believe can win, which is why we win 98 percent of all our cases. 

And how much do you charge? 

Óur founders started as a legal aid organisation, specifically helping tenants, and it was after we saw how many tenants actually need actual legal representation and not just legal advice, that we began our company. So helping the tenant has always been at the forefront of our minds. 

We have a “no cure, no pay” payment model, meaning that if, against the expectations, we don’t win the case, we don’t charge anything at all. When we win the case, we don’t charge more than 25% of the winnings, so as to ensure that the tenant will always get some kind of value from having used our services.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

RENTING

INTERVIEW: ‘Landlords who charge excess rent in Denmark target expats’

Alex Dagil, the serial entrepreneur behind the company Rent Hero has helped over a thousand foreigners in Denmark challenge excess rents. He explained to The Local why expats are targeted and why he won't take on every case.

INTERVIEW: 'Landlords who charge excess rent in Denmark target expats'

Denmark’s system of rent control is complicated, with at least four different sets of rules determining what counts as a fair rent, depending on the age, location and size of the apartment, and on what actions current and former landlords have taken to win the right to levy higher rents. 

But rent is still controlled, meaning anyone who suspects they are being overcharged can submit a complaint to their local rental board (see list here), themselves.

You can also ask Lejernes Landsorganisation (LLO, the Danish Tenants Organisation) and Dankse Lejere (Danish Tenants), two tenants unions who help members win fair rent cases. Then there are the private companies offering help reducing rents, often on a no-win, no-free basis, such as Fair Husleje and Digura. Rent Hero is alone in specialising in helping foreigners. 

READ ALSO: The four ways your rent can be regulated in Denmark

“We saw that expats were being overcharged and that they were not really any companies that tried to specifically cater to the needs of expats,” Dagil told The Local about his decision to launch the company five years ago. 

This was surprising, he said, as foreigners were and still are disproportionately affected by unscrupulous landlords.  

“Landlords who want to rent out housing at above the fair price target expats because they don’t know the rules,” he explained. “And then even if they lose a case, they limit their loss because an expat might stay in an apartment for two to three years, but if you rented out to a Dane, they might be stuck there for ten years.”

This can make a big difference to the financial impact of having excess rents corrected, he pointed out. 

If it’s decided rent should be reduced by 5,000 kroner a month, which is quite common, the landlord faces an annual loss of 60,000 kroner. If the Danish tenant remains in place for 10 years, that’s a 600,000 kroner loss. If an expat manages to get their rent reduced, they might only stay three years, limiting the loss to 180,000 kroner. 

This is why some landlords advertise apartments as available to expats only, or use expats only rental portals like Apartment in Copenhagen

“Those apartments are never available for Danes for the specific reasons which I mentioned before: The rent is super-overpriced, so they’re worried that it could be rented out to a Dane they would stay there for longer and and the likelihood of them being aware of rent control is probably also higher.” 

Some foreigners are of course naive, but others are simply in a hurry to get an address that can provide them with a CPR number, which can into turn allow them to get a bank account, and so start work. 

“They have a job, which they would very much like to start and they need to have a place to register their CPR, so they can get started with their life in Denmark. So they’re much more desperate in a housing market where everybody wants affordable housing,” Dagil explained.

The landlords offering these expat-targeted apartments will often claim that they’re providing a service that makes it easier for expats to settle. 

“They say ‘we’re offering this great product for expats’. Well, that’s fine. You’re doing a product targeted at expats. But there’s no place in the rental law for creative products targeted towards the needs of expats, because rent control is rent control. And they don’t see it that way,” Dagil said.

Rent Hero estimates that expats are charged on average 30 percent more in rent than Danes are for a comparable apartment, but for some expats, that’s a price worth paying. Dagil told The Local he found many expats are unwilling to challenge excess rents, even if they fully understand how much extra they are paying. 

“The primary issue that expats have is that they’re worried that if they start a case they’ll get evicted. What happens with their deposit, if they start a case? Those are the two primary issues. It’s never isolated. People don’t look at rent in isolation. They’re worried about, what if the landlord retaliates? What if they do x? What if I need to have my dishwasher switched? What happens then? It’s not necessarily the lack of information, which is the biggest thing holding people back.” 

Dagil said Rent Hero’s interests are more aligned with those of tenants than the big rental unions, as the rental unions generally want to take all cases to the rental board to challenge the rent, partly to set a precedent keeping rent under control for all tenants, even if it might not be in the interests of the individual tenant. 

Big landlords in Denmark increasingly appeal all decisions against them from rental boards to the higher housing court, largely because a new rule requires them to inform all tenants in a building if they accept a rental board’s decision, meaning they risk other tenants also seeking reduced rent. 

Often, Dagil said, this can mean tenants risk spending more on legal costs than they can get back in rent. 

“There’s a lot of cases we simply do not take – even though the client might win it at the rent board,” he explained. “If the tenant doesn’t have legal insurance, they will have to pay for that cost themselves. If you’re dealing with a case that might save 1000 kroner a year in rent, and you’re left with a potential court case that costs you 50,000 to 70,000 kroner to pursue, no one in their right mind would pursue these cases.”

Dagil argues that the two tenant unions will tend to push members to pursue such cases, whereas Rent Hero is more likely to seek a settlement with the landlord, that might not reduce rent to such a large extent but which will avoid the courts. Rent Hero, he says, will only advise clients to go to the courts if the amount they are being overcharged is sufficiently large, if the landlord is a relatively small landlord who tends not to appeal cases, or if the tenant has legal insurance. 

An article in Vi Lejere, a website run by the Danish Tenants’ Organisation, accuses Rent Hero on the other hand of levying “huge fees”, with one tenant ending up having to pay the company fully half of the excess rent they had recouped.  

Dagil does admit that Rent Hero is “maybe a bit more expensive”, than the other rent reduction companies. “But it’s very easy to get hold of us usually, and we’re also super-specialised,” he said. 

The tenants’ organisations are likely to push people to take their case to the rent board regardless, even though they only have a win rate of about 50 percent, whereas Rent Hero, with its no-win, no-pay structure has to focus on cases with a high chance of a quick win.  

“If they don’t have the conversation beforehand about legal insurance, it’s probable you will end up worse than you were before. And I think that what I try to strive towards is to be as honest as possible.” 

SHOW COMMENTS