[Case Summary]This case involves a dispute over a housing lease contract. Xiao Song, a tenant from Shijiazhuang, and Liu * signed a "Beijing City Housing Lease Contract" for a house at No. 301 in Haidian District, Beijing, with a deposit of 16,667 yuan. After the lease term expired, Liu * refused to return the deposit and counter-sued to claim compensation of 21,913.4 yuan. Xiao Song entrusted the Beijing Henglu Law Firm to handle the case.Yuan HangThe lawyer filed a lawsuit. The lawyer argued that the remaining deposit should be refunded after settlement in accordance with the contract, and pointed out that the obligation to repair the facilities lay with the landlord, and the two parties had completed the handover. The court rejected Liu's counterclaim, and ruled in accordance with Article 577 of the Civil Code of the People's Republic of China that Liu should return the deposit of 16,667 yuan within seven days, and the litigation fees would be borne by Liu. The core disputes are whether the deposit should be refunded and whether the counterclaim for compensation can be established. Applicable legal provisions: Article 577 of the Civil Code of the People's Republic of China.

I. Review of the Case

When renting a house abroad, people often search for topics like "What to do if the rental deposit is not refunded?" "How to sue the landlord for not refunding the deposit?" and "How to respond to the landlord's counterclaim for damage?" In May 2019, Xiao Song signed a "Beijing City Housing Lease Contract" with Liu * through an intermediary, with a lease period from May 28, 2019 to May 27, 2020, and a deposit and monthly rent of 16,667 yuan each; later, the lease was renewed for another year, with the monthly rent reduced to 15,833 yuan. After the contract expired, the parties agreed to renew the lease for two months. In early July 2021, due to a failure to reach an agreement on the renewal, it was agreed that the inspection would be conducted on July 27. However, due to delays in cleaning and handing over the key cards, all the handover procedures were completed on August 4, 2021. Despite this, Liu * still refused to refund the deposit.

Under these circumstances, Xiao Song decided to seek justice through legal means and entrusted the Beijing Henglu Law Firm to handle the case for himYuan HangThe lawyer filed a lawsuit with the court. Hengluo Lawyer pointed out that according to the "Beijing City Housing Lease Contract", after the lease expires or is terminated, the parties shall settle the deposit, and the remaining part shall be refunded after the settlement; Xiao Song does not have any fees such as unpaid rent or breach of contract compensation that need to be settled, so Liu * should refund the deposit of 16,667 yuan.

II. The focus of the case

  • Focus 1: Whether the deposit should be refunded after the expiration of the lease contract.Xiao Song claimed that there were no unpaid fees or breaches of contract, and the deposit should be refunded in full. The dispute lies in whether the landlord can deduct the amount for the damaged facilities from the deposit.
  • Focus Two: Whether Liu's counterclaim for compensation of 21,913.4 yuan is valid.Liu * claimed that the mattress, lights, wallpaper, and marble countertops in the house were damaged and that some unpaid fees remained outstanding, demanding a deduction from the security deposit and actual compensation. The focus of the dispute lies in the burden of proof.
  • Focus 3: The allocation of costs and responsibilities after the handover is completed.The two sides only completed the handover on August 4th. The delay was due to Liu *. The focus of the dispute was on who should bear the costs after the handover.

III. The professional intervention of Hengluo Law Firm

The plaintiff (the tenant) alleges that:Xiao Song argued that the deposit of 16,667 yuan should be settled and returned upon the expiration of the contractual lease period. He/she has settled all the fees and there is no breach of contract compensation. Therefore, he/she demands that Liu return the deposit.

The defendant's (landlord's) position:Liu * disagreed with the claim, saying that the parties had not settled the water and electricity bills, and that the mattress, lamps, wallpaper, and marble countertops were damaged. He filed a counterclaim demanding that Xiao Song compensate him for the losses of 21,913.4 yuan, deduct the deposit of 16,667 yuan, and pay him an actual compensation of 5,246.73 yuan, along with interest.

Hengluo Lawyer's Agency Opinion:Yuan HangThe lawyer explicitly stated that he/she disagrees with all the counterclaims and pointed out: Firstly, the contract stipulates that the obligation to maintain the relevant facilities and equipment lies with Liu *. The two parties have completed the handover, and the expenses after the handover should be borne by Liu * himself/herself, so Xiao Song has no obligation to compensate. Secondly, Xiao Song moved out on July 27, 2021, but the handover was delayed until August 4 due to Liu *'s reasons. Xiao Song has settled all the expenses, and Liu * subsequently slandered Xiao Song for damaging the facilities and stealing the mattress, which is supported by WeChat records and other evidence.

IV. Outcome of the case

After trial, the court held that Xiao Song had vacated the involved house on schedule and there was no arrears in water, electricity and gas fees. The evidence submitted by Liu could only prove the fact of house repair, but it was not enough to prove that the damage to the items including wallpaper was caused by Xiao Song's improper custody or unreasonable use of the house. Therefore, the court did not support any of Liu's counterclaim requests.

In summary, in accordance with the provisions of Article 577 of the Civil Code of the People's Republic of China, it is ruled that Liu * shall return the deposit of 16,667 yuan to Xiao Song within seven days; and the litigation fees in this case shall be borne by Liu *.

5. Henglu Law Firm's Reminder

The dispute over the rental deposit directly affects the vital interests of ordinary tenants. This case was handled by Beijing Henglu Law Firm.Yuan HangAttorney (Practice Certificate No.: 11101202110286151, subject to the certificate issued by the judicial administrative organ). Note: If the landlord refuses to refund the security deposit, you can first negotiate with them, then seek third-party mediation or assistance from regulatory authorities. If this fails, the dispute can be resolved through litigation. For cases with relatively low amounts, simplified procedures are generally applicable. If the other party refuses to mediate, the outcome will typically be determined within approximately three months. It is essential to properly preserve evidence such as the rental contract, transfer records, utility payment records, handover documents, and repair request records at all times.

VI. Common Questions and Answers about Rental Deposit Disputes

  1. Q: If the landlord refuses to return the security deposit when the lease expires, how can I sue them?
    A:Collect the contract, the transfer of the deposit, the handover document, and the proof of payment of the fees. File a lawsuit with the court in the location of the house to demand the return of the deposit. For cases with a small amount of disputes, the simplified procedure is usually adopted.
  2. Q: Is it reasonable for the landlord to deduct the security deposit because something is broken?
    A:This is unreasonable. The landlord must provide evidence to prove that the damage was caused by the tenant's improper use; normal wear and tear and those obligations of the landlord for maintenance as stipulated in the contract cannot be deducted from the security deposit.
  3. Q: Can the tenant's counterclaim against the landlord for compensation be successful?
    A:It depends on the evidence. The landlord needs to prove that there is a causal relationship between the damage to the items and the tenant. Simply proving the fact of the repair is not enough to support compensation, and the counterclaim in this case was dismissed.
  4. Q: Can I still get my deposit back if I haven't signed a written rental contract?
    A:Yes. If there are transfer records, chat records, etc. to prove the lease relationship and the payment of the deposit, you can still claim for its return.
  5. Q: What should I pay attention to during the check-out handover to get my deposit back?
    A:When checking out, inspect the house with the landlord, sign the handover form and take photos as evidence. Settle the water, electricity and gas bills, and keep the receipts in case the landlord claims damages afterwards.