[Direct answer]The tenant can recover the deposit, provided that the amount of the deposit, the facts of its delivery, and the evidence chain of the reasons for its deduction are complete. If the lease term has expired, the house has been returned, the utilities and property management fees have been settled, and there is no agreed-upon damage, the lessor shall return the deposit within a reasonable period of time. General excuses such as wall stains and normal wear and tear do not constitute a legitimate withholding. If the lessor claims to offset the deposit, he must present the handover receipt, damage photos, repair invoices, and expense details to prove that the losses are genuine and the amount is reasonable. According to the Contract Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021), the deposit is a performance guarantee rather than a penalty fund, and the unspent portion should be returned. For disputes involving relatively small amounts, payment orders or small claims litigation may be used.

I. Problem Background and Typical Scenarios

The process of refunding security deposits rarely relies on a formal decision, but rather on waiting it out. On the day of moving out, both parties verbally agreed to refund the deposit within a week. The tenant simply handed over the keys, completed the move, and considered the matter settled—without recording utility meter readings, signing a handover document, or taking photos of the entire apartment at the time of moving out. All they said in the chat was that the deposit would be refunded later. Two weeks later, the landlord claimed there were stains on the walls that needed repainting; a month later, it became scratches on the floor, a need to replace the door lock, and deductions for cleaning fees. When the tenant urgently pressed for a refund, the landlord simply stopped replying. There are several common pitfalls: 1. Cash payments with only a handwritten receipt, where the amount and recipient don’t match; 2. Deposits collected by sub-landlords or agencies, with brands withdrawing from the market or agents leaving their jobs during the refund process, leaving both parties to blame each other; 3. Contracts stating "refund within 30 working days after moving out" without specifying penalties for delays, allowing the process to drag on indefinitely; 4. Disputes over who is entitled to the deposit, whether it should be refunded in full or proportionally, and internal conflicts over these issues; 5. Landlords citing unspecified deductions for repairs, failing to provide invoices, and blurring the line between normal wear and tear and intentional damage. What’s most troubling is that the amounts involved are often small. Many give up after calculating the legal fees and time off work involved, allowing landlords to drag out refunds as a low-cost strategy. What truly needs to be addressed is ensuring every step of the payment-to-handover process is documented in writing.

II. Key points of dispute

The first layer is the establishment of the deposit creditor's rights. The lease contract, deposit clause, receipt or transfer note, and the receiving party jointly prove how much was delivered and to whom it was delivered. For cash payments without a receipt, it's the most difficult to provide evidence. The second layer is whether the conditions for return have been met. Common prerequisites for return include the expiration of the lease term or its termination according to law, the return of the property, the return of the keys and access control cards, and the settlement of utilities and property management fees. For early terminations, it's also necessary to check the contract's provisions on breach of contract and the handling of the deposit. The third layer is the burden of proof for deductions. If the landlord claims deductions, they must prove that the damage existed, occurred during the lease period, was not normal wear and tear, and that the repair costs were reasonable and actually incurred. Photos taken after the fact and verbal quotes are usually insufficient to fully deduct the amount. The fourth layer is amount determination. Wall stains and minor scratches are often regarded as normal signs of use, while structural damage, unpaid fees, or missing items may trigger deductions. Whether the deposit can be offset against arrears or penalties depends on whether the contract provides for such provisions and whether the claims overlap. The fifth layer is the subject and counterparty. For cases involving sub-landlords, intermediary collection, or properties sold to new owners, it's often necessary to align the contract chain and the payment chain. The sixth layer is procedural selection: payment orders, small claims litigation, and ordinary litigation each have different costs, timeframes, and evidentiary requirements. Choosing the wrong procedure may drag out small disputes into costly and time-consuming battles.

III. Professional analysis by Hengluo Law Firm

When handling deposit disputes, Henglu Lawyers first conduct three analyses before determining the legal approach: 1. **Capital Analysis**: List the deposit amount, refunded amount, and deducted amounts item by item, eliminating deductions without supporting documentation. 2. **Evidence Analysis**: Organize materials chronologically across five key stages (payment, possession, return, settlement, and reminder) to identify any missing links. 3. **Cost Analysis**: Compare the disputed principal amount with legal fees, lost work time, and potential attorney fees to determine whether to send a letter of demand, apply for a payment order, or file a lawsuit directly. Most disputes stall at the second stage: payments may involve transfers, handover without signing documents, or settlements relying solely on verbal confirmation. The counterparty often confuses return conditions with outstanding fees. A more effective approach in practice is to shift the burden of proof back to the tenant. Under the Civil Code of the People's Republic of China (effective January 1, 2021) and the Civil Procedure Law of the People's Republic of China (amended December 24, 2021, effective January 1, 2024), the tenant only needs to prove deposit payment and property return. The landlord must provide evidence of damage and detailed cost records to justify deductions; failing this, deductions cannot be justified. For low-value disputes, payment orders offer cost-effective solutions: clear creditor-debtor relationships with no other disputes allow applying for urgent enforcement. If the counterparty raises objections within the statutory period, the case can transition to small claims litigation. Complex cases often involve multiple deductions, third-party payments, or property transfers requiring clarification of contract, payment, and handover chains. This streamlines proceedings far more efficiently than repeated demands for payment.

IV. Practical suggestions and legal basis

According to the corresponding links, the Civil Code of the People's Republic of China (effective January 1, 2021) governs the obligation to return the deposit, the nature of performance guarantees, and the offsetting of breach of contract and losses; the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the General Provisions of the Contract Chapter of the Civil Code (effective December 5, 2023) elaborates on the interpretation of clauses and the adjustment of penalties; the Company Law of the People's Republic of China (amended on December 29, 2023 and effective July 1, 2024) is used to verify authorizations when the lessor is a company and the receiving party is different from the contracting party; the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and effective January 1, 2024) governs payment orders, small claims litigation, and the deadlines for providing evidence and verifying originals; and the Methods for Payment of Litigation Fees (effective April 1, 2007) govern filing fees and application fees. The specific actions are as follows: 1. At the time of signing the contract, clearly specify the deposit amount, return timeframe, deduction items, and liability for overdue payments, and indicate in the transfer notes that it is a housing deposit. 2. Take photos of the property from the same angle at the time of moving in and moving out, and prepare a handover list. Record the readings of water, electricity, and gas meters, and have both parties sign the documents. 3. On the day of handing over the property, settle all fees, leave the keys, and obtain a receipt for the access control system. Confirm in writing that there are no outstanding fees. 4. Send a written reminder letter to request the return of the deposit, stating the amount, legal basis, and deadline, and retain the proof of delivery. 5. For cases with clear amounts and no substantial disputes, apply for a payment order; for more contentious cases, initiate small claims litigation and prepare a detailed list of losses. For cases requiring verification of the entire contract and payment chain, refer to the relevant provisions of the Civil Code and other laws.Business and contract disputes in enterprisesThe deposit clause and the handover evidence list under the item.

5. Hengluo Law Firm's Reminder

The deposit is not a prepayment that the landlord can freely dispose of. It is a performance guarantee. When moving out, it is important to ensure three things are properly handled: signing the handover document, recording the readings of water, electricity, and gas meters, and returning the keys and access cards with a receipt. This is much more effective than checking chat records afterward. If the other party demands to deduct money, don't rush to argue that you're innocent. First, ask them to provide photos of the damage, repair invoices, and a detailed cost breakdown. For items they can't produce, exclude them from the total. Normal wear and tear should be separated from intentional damage. Don't let cracks that existed at the time of move-in be attributed to you when moving out. It's more effective to write a reminder letter stating the amount, basis, and deadline, and keep the delivery receipt. When the amount is not large, prioritize using a payment order, as the cost is manageable. Once the other party raises objections or involves a sub-landlord, it's not too late to switch to small claims litigation. The most important thing is not to give up just because it's a hassle. What you're delaying isn't just money, but also the freshness of the evidence.

VI. Frequently Asked Questions

Q1: If the landlord deducts the entire security deposit on the grounds of wall stains, what proportion of the deposit can the tenant recover?

There's a high chance of getting most of the deposit back, but it's usually not possible to deduct the entire amount. According to the Contracts Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021), the deposit is a performance guarantee. The lessor can only deduct it within the scope of actual losses and losses related to the lessee. Minor stains on the walls and normal signs of use are generally treated as natural wear and tear and cannot be confiscated in full. The amount that can be refunded depends on three materials: photos taken from the same angle during check-in and check-out, a handover list signed by both parties, and repair invoices and expense details. If the other party only takes photos after the fact and cannot provide actual spending receipts, the deduction claim will be difficult to establish. If the contract contains standard clauses stating that the deposit will not be refunded under any circumstances, it may be adjusted because it unreasonably exempts the lessor from liability and imposes additional burdens on the other party.

Q2: When claiming the security deposit, which copies of the security deposit receipt and the handover form should be prepared?

What needs to be prepared is not a single document, but an entire chain from payment to handover of the house. On the payment side, keep the deposit receipt or transfer voucher, and note down the words "house" and "deposit" in the remarks. Highlight the corresponding clauses in the contract; on the possession side, keep the lease agreement, rental payment records, and the handover form, which prove that the tenant has indeed rented the house and paid the deposit; on the return side, keep the handover list, keys, and access control receipts, as well as screenshots of the electricity, water, and gas meter readings and payment settlements. These are the key to fulfilling the conditions for returning the deposit; on the reminder side, keep the written reminder letter and delivery receipt, as well as chat records showing the other party's delay or deductions. If the deposit is collected by an intermediary or a sublandlord, also prepare the collection agreement and the information of the collection subject, so that you can pinpoint who to claim against. Try to use original documents as much as possible, and screenshots should retain the context and time information. Don't just screenshot a single sentence and then send it back.

Q3: How is the acceptance fee calculated for a deposit dispute involving thousands of yuan under the small claims litigation procedure?

The cost of disputes over small deposits should be kept lower than the principal. Let's first clarify the two points. According to the "Measures for the Payment of Litigation Fees" (implemented on April 1, 2007), the case acceptance fee is calculated in stages based on the amount of the claim. When the subject matter is a few thousand yuan, the burden is very light when applying for simple or small-amount procedures. The applicant pays the fee in advance when filing the case, and the losing party ultimately bears the fee or shares it proportionally. Applying for a payment order also requires paying the application fee according to the standard, which is more cost-effective than going through the entire litigation process. There is no government-set price for attorney's fees. They are charged based on the case, a percentage of the subject matter, or a time-based agreement, subject to the contract of entrustment. For cases with small subject matters, it's more cost-effective to charge based on the case.

Q4: How many days do I need to wait after applying for a payment order to recover the deposit before the other party is required to raise objections?

A payment order is a short-term solution, but it depends on whether the other party responds. If the creditor-debtor relationship is clear and there are no other disputes between the two parties, they may apply to the court with jurisdiction for a payment order in accordance with the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2024). After the court accepts the application, it will issue the payment order to the other party, who shall raise written objections or make repayments within 15 days from the date of receipt. If the other party neither raises objections nor performs the obligation within the time limit, the applicant may apply for enforcement. Once the other party raises substantive objections within the time limit, the enforcement procedure will be terminated, and the case will need to be transferred to small claims litigation or ordinary litigation. After the case is transferred to litigation, the first-instance summary procedure generally takes three months, and the ordinary procedure generally takes six months.

Q5: On the day of moving out, should I first take photos of the water and electricity meters and record the readings, or should I first get back the keys and the receipt?

Both procedures were completed on the day of moving out. The order was to first read the meters and take photos, then sign the handover document and receive the receipt. First, take photos of the entire room from the same angle, record the readings of the water meter, electricity meter, and gas meter and save the screenshots. Archive the payment receipts together; then sign the handover list with the landlord or agent, noting the current condition of the house, the inventory of items, and the absence of unpaid fees. Return the keys and request a written receipt when returning the access control card. Both parties should sign and keep a copy each. At the same time, confirm the amount of the security deposit and the deadline for its return in writing, rather than just an oral agreement. If the other party proposes deductions on the spot, ask them to list the items, amounts, and justifications in the list and take photos of them. Evidence of deductions added later will be much less reliable. After completing these steps, check the return clauses in the lease and the three-year statute of limitations to prepare the necessary attachments for subsequent reminder letters or payment orders.

The above answer is based on the judicial practice in Beijing. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limit. →Corporate commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.