Security Deposits (Kaució) in Hungary
Learn the rules for residential security deposits in Hungary, including the 3-month court threshold, interest rules, and return procedures.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
In Hungary, the security deposit is officially termed óvadék, though it is universally known by the colloquial term kaució. The rules for its handling are primarily governed by the Civil Code (Act V of 2013), which became effective on 15 March 2014, and the Act on the Lease of Residential and Commercial Premises (Act LXXVIII of 1993).
1. The Three-Month Threshold
Hungarian law does not technically 'cap' the deposit, but it provides a strong deterrent against excessive amounts:
- Court Reduction: If the security deposit exceeds three times the monthly rent, the tenant has the right to ask a court to reduce it to a 'reasonable' level (Ptk. 6:343 § (4)).
- Market Standard: Consequently, almost all Hungarian residential leases specify a deposit of exactly 2 or 3 months' rent.
- Base Rent Only: The calculation must be based on the pure rent amount, excluding utility advances or common building charges.
2. No Mandatory Escrow or Interest
Hungary remains one of the few European jurisdictions without a mandatory third-party escrow system for rental deposits:
- Landlord Possession: The landlord is permitted to hold the cash directly in their own bank account.
- Statutory Yield: Under Section 6:343 (3) of the Civil Code, any interest or yield generated by the security deposit belongs to the tenant.
3. Return Deadlines and Reconciliation
The law requires the deposit to be returned upon termination of the lease (Ptk. 6:343 § (2)).
4. Allowable Deductions
A security deposit may be stipulated to secure the performance of an obligation (Ptk. 6:343 § (1)).
Best Practices for Landlords
- Meticulous Handover Protocols: Use the Landager move-in checklist with photos. In Hungary, if you don't have a signed protocol showing the unit was pristine at move-in, a court will almost always rule in favor of the tenant in a damage dispute.
- Keep Separate Accounts: Even though not legally required, keeping deposits in a separate sub-account prevents accidental spending of tenant funds.
- Draft Clear Termination Addendums: When a tenant moves out, sign a document stating exactly how much is being returned immediately and how much is being held for final utility bills.
Frequently Asked Questions
▶What are the security deposit rules and return deadlines in Hungary?
Hungary has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
▶What are the key landlord-tenant laws in Hungary?
The Hungarian residential rental market is governed by Act V of 2013 on the Civil Code and the Housing Act. 2026 features a significant tightening of the short-term rental market to prioritize long-term housing stability. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in Hungary?
The eviction process in Hungary requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the rent increase limits and caps in Hungary?
Hungary has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
Read the complete guide▶What are the mandatory lease requirements in Hungary?
Lease agreements in Hungary must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in Hungary?
Landlords in Hungary are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Hungary?
Hungary has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Hungary?
Landlords in Hungary must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
Read the complete guide📬 Get notified when these laws change
We'll email you when landlord-tenant laws update in No spam — only law changes.
