[Direct answer]In the Beijing area, the nature of the deposit is a guarantee. If the lease expires, the house is undamaged, the fees are settled, and there are no breaches of contract, the landlord shall refund the full amount of the deposit. There is no basis for deducting the deposit on the grounds of normal wear and tear such as "nail holes on the wall" and "aging furniture". The process of not refunding the deposit involves three steps: written reminder with evidence, negotiation or people's mediation, and small claims litigation or arbitration. Since the amount of the deposit is small and the facts are clear, it is generally possible to recover the deposit with the evidence of handover.

1. Problem background and typical scenarios

Typical scenarios of deposit disputes: When tenants move out, landlords conduct meticulous inspections and deduct money for things like broken light bulbs and blackened tile seams; if tenants move out early, landlords directly confiscate the entire deposit; when the contract expires and the tenant does not renew the lease, the landlord deducts money for "losses during the vacancy period"; and when the real estate agency goes bankrupt, there's no one to return the deposits. The deposit is usually one to three months' rent, an amount that's not large, but the willingness to protect one's rights is often worn down by the hassle involved, and landlords take advantage of this.

II. Key points of dispute

First, the scope of legitimate deductions. Arrears in rent, utilities, property damage, and damage to housing and facilities (exceeding normal wear and tear) as well as penalties for early termination of the lease are considered legitimate deductions; natural wear and tear, depreciation, and routine repainting are not included. Second, the allocation of the burden of proof. The landlord claiming deductions must provide evidence of the existence of the losses and their reasonable amount. Handover documents, photos, and item lists are the core evidence; if there is no handover evidence, the court will make a judgment based on the possession status and common sense. Third, adjustment of penalties for early termination of the lease. If the agreed penalty is excessive, the tenant may request a reduction, and the deduction amount should be linked to the actual losses.

III. Professional analysis by Henglue Law Firm

The key to winning a deposit dispute lies in the "evidence of handover," and the entire process should be conducted according to a timeline. **During check-in**: - Verify the condition of the house and furniture/appliances with the landlord, taking photos/videos with time stamps. - Fill out a handover form and have both parties sign it, recording the readings of water, electricity, and gas meters. - This evidence serves as the ultimate defense against "nitpicking inspections" during move-out. **During the lease term**: - Document all repairs (use WeChat for written records) and photograph any natural wear and tear on major furniture. - For early move-out plans: Review the contract's penalty clauses and calculate the total amount (penalty + rent paid + deposit refund) before notifying the landlord. **During move-out**: - Schedule a professional inspection with full video recording. - Verify each item on the handover form and confirm deductions and amounts in real time. - If the landlord claims deductions, demand a written list of items, grounds, and amounts, refusing oral deductions. - Simultaneously keep receipts for utility payments. **Legal remedies if unsuccessful**: 1. **Written notice**: Send a reminder via WeChat and mail, specifying the deadline and amount for return. 2. **Mediation**: Apply to the local people's mediation committee (efficient for rental disputes in most Beijing districts). 3. **Lawsuit/arbitration**: For deposits under ¥20,000, use the Small Claims Court or Beijing Internet Court's online filing (low-cost litigation). 4. **Interest claims**: Tenants can also seek compensation for interest during the deposit retention period. On the landlord's side: - Contracts must clearly specify the deposit amount, deduction conditions, and refund timeline (within days after move-out). - Use written inspection reports rather than oral assessments. - Major deductions must be supported by invoices or contract clauses. - Unjustified deductions result in legal penalties and reputational damage. Since the implementation of Beijing's Housing Lease Regulations, mechanisms like contract registration and deposit escrow have gradually taken effect. Through formal channels, disputes over deposits can be resolved more efficiently.

IV. Practical suggestions and legal basis

First step: Three pieces of evidence: two handover forms for check-in and check-out, photos and videos of the entire process, and the transfer record of the deposit; Second step: Written reminder: set a deadline for return, and send it via mail and WeChat to leave a record; Third step: Mediation and litigation: prioritize mediation by the local government. If unsuccessful, proceed with small claims litigation or arbitration, and claim interest simultaneously; Fourth step: Contract optimization: When signing a new contract, include the deduction circumstances and the time limit for returning the deposit to reduce disputes at the source. Main legal basis: Articles 577 and 585 of the Civil Code of the People's Republic of China (effective since 2021) (liability for breach of contract and adjustment of the breach of contract penalty), Article 710 (the lessee shall not bear liability for compensation if he/she uses the leased property in accordance with the contract); the provisions on lease contracts and deposits in the Beijing Municipal Housing Lease Regulations (effective since 2022); specific application shall be subject to the currently effective laws and regulations.

5. Henglue Law Firm's Advice

Deposit disputes are a classic example of "evidence-first": photos taken on the day of check-in are much more useful than the arguments on the day of check-out. If the deposit is not refunded, the process should follow the path of reminder - mediation - small claims litigation, which is low in cost and short in duration. Don't let the "trouble" save the defaulting party money. For disputes involving deposits and leases, you can refer to the following methods:Real estate transactions and construction projectsObtain a comprehensive solution for the service, which involves group renting and lease compliance. This solution can be combined with the theme of this batch of lease periods. For disputes over operational lease contracts, you can refer to it for reference.Business and contract disputes in enterprisesFor those interested in resolving small-scale disputes, you can pay attention to the following platforms:Specialised legal servicesRegarding the compensation for injuries caused by defects in rental housing facilities, you may pay attention to the following aspects:Personal injury and medical disputes板块。

VI. Frequently Asked Questions

Q1: Is it reasonable for the landlord to withhold the security deposit because of the nail holes on the wall?

This is generally unreasonable. Normal residential wear and tear is not within the scope of compensation. Nail holes and minor wear and tear are common forms of wear and tear, and only damage that exceeds a reasonable range can be deducted.

Q2: Will the security deposit be completely lost if I terminate the lease early?

No. If you terminate the lease early, you will bear the liability for breach of contract according to the contract. If the penalty for breach of contract is too high, you can request a reduction. After the deduction, the remaining deposit should still be refunded.

Q3: Can I win the case without a handover document?

The difficulty has increased, but it's not a must to lose the case: photos of the accommodation, a timeline of the renovation traces, witness statements from neighbors, and repair records can all help to prove the condition of the house. The court will make a comprehensive judgment based on all these pieces of evidence.

Q4: Can I claim interest on the deposit?

Yes. If the landlord fails to return the deposit on time, the tenant can claim the interest loss during the period of the deposit's occupation and include it in the claim.

Q5: Who should I contact to get the deposit refunded by the agent?

According to the contractual provisions, the principal may claim compensation from the intermediary based on the entrustment relationship, and if the intermediary goes bankrupt, the principal may verify the flow of funds between the intermediary and the landlord and then claim compensation from the ultimate recipient.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for real estate transactions·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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. If you encounter disputes, please consult a practicing lawyer in time.