Landlord advice · 5 min read

The rental deposit: amount, receipt, when it is returned and when it can be withheld

The deposit is the most common cause of disputes between landlord and tenant. Almost always the reason is the same: nothing was written down. Here is how to do it so there is no dispute.

How much is the deposit

The usual practice in Bulgaria is one month's rent, often two for furnished properties. The law does not set an amount — the contract does. The deposit is not the first month's rent and it is not the "last month's rent". It is a guarantee and it is returned if there is no damage and nothing owed.

How to document it

In the contract: the exact amount, what it covers (unpaid rent, bills, damage) and the deadline for returning it after move-out (usually 7–14 days).
A receipt on payment, with date and signatures. If paid by bank transfer, the reference should read "deposit under tenancy contract of …", not "rent".
A handover protocol with photos at move-in. Without it you cannot prove damage.

When the landlord may withhold the deposit

Unpaid rent or bills as of the move-out date
Damage beyond normal wear and tear, documented with "before" and "after" photos
Notice period not observed, if the contract provides for this

Normal wear and tear (slightly worn walls, a worn floor, marks from furniture) is not damage. Withholding must come with a written explanation and itemised amounts. "I am keeping the deposit" without a breakdown is a sure path to a dispute.

When it must be returned

After the move-out protocol and within the deadline in the contract. If there is no deadline, 14 days is reasonable. Delaying without grounds entitles the tenant to claim the amount in court, including interest.

In Livupp the deposit is a separate obligation with a receipt, and the photo protocols are stored with the property. At move-out you compare and decide on the facts.

Manage the deposit without disputes

Deposit with a receipt, protocol with photos and rent with confirmation. Livupp for landlords — 14 days free.

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Frequently asked questions

Can the deposit be used as the last month's rent?

Only if the landlord agrees in writing. By default the deposit is a guarantee and the tenant owes the last month's rent separately.

What happens to the deposit if the property is sold?

The new owner steps into the contract and owes the return of the deposit if they received the amount from the previous owner. Settle this explicitly at the sale.