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The rental deposit is withheld: checking the deductions

How to assess a withheld rental deposit in Bulgaria using the lease, handover condition, outstanding bills and evidence of damage.

Kalchev Law FirmA law firm publication
1 min readPublished: Legal review pending

The essentials

  • The specific deposit clause governs the arrangement.
  • Each deduction needs a basis and amount.
  • Entry and exit records are important evidence.

A rental deposit is governed first by its contractual clause: what it secures, when it is returned and how deductions operate. Calling a payment a “deposit” does not make it sale earnest money or automatically justify retaining the entire amount.

What is being deducted?

Separate unpaid rent, utilities, damage and contractual penalties. Each amount needs a basis and calculation. A photograph of damaged furniture does not by itself establish when the damage occurred or the reasonable restoration cost. Ordinary wear does not automatically justify every refurbishment chosen by the owner; minor-repair obligations and the agreement must be assessed.

Article 233 of the Obligations and Contracts Act presumes receipt in good condition unless proved otherwise. The initial inventory therefore matters. Compare it with photographs, reported defects and the condition on return.

Requesting the balance

The agreement may allow a reasonable wait for final utility bills. This does not justify indefinite withholding without an account. Request an itemised explanation, supporting records and the basis for the disputed portion. If set-off is asserted, its requirements also need checking. Do not treat the deposit as the last month’s rent without agreement: doing so may create a separate arrears claim.

Practical guidance

What to do, step by step

01 / 03

Compare the condition

Look for traceable changes rather than impressions.

  • Compare entry and exit records and photographs.
  • Separate previously reported defects.
02 / 03

Request an account

A single figure for “damage” does not explain the claim.

  • Ask for bills and repair details.
  • Check which obligations the deposit secures.
03 / 03

Address the balance

Identify the amount due and its due date.

  • Send a written repayment request.
  • Preserve objections to disputed deductions.

Discuss this legal issue with our firm

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This article is for general information only. It does not constitute or replace individual legal advice.