The lease is about to end, and a question often left until the last day comes up: what happens to the security deposit? The answer requires reviewing the agreement, the property’s condition and the amounts each party considers outstanding.
Documents that help reconstruct the tenancy make the handover easier to prepare. A deposit receipt, an inventory and a joint inspection help establish the balance. Without them, a straightforward conversation can become a disagreement over what each person remembers.
First, check what the deposit secures
Find the clause identifying the deposit. Check the amount paid, the obligations it covers, the return conditions and the agreed process for reviewing deductions. Keep the receipt or bank transfer confirming that payment.
Do not confuse the deposit with rent paid in advance. Before deciding to use it for the final month, review the agreement and applicable law. If the parties agree on that use, document the scope of the arrangement and any balance still to be resolved.
If there were renewals, rent changes or an additional deposit, gather those documents too. Review the amount actually paid and supported by evidence, rather than an approximate figure recalled from memory.
Ordinary wear has its own treatment
In the State of Mexico, Article 7.688, section VI, of the Civil Code requires the property to be returned in the condition in which it was received, except for deterioration from normal use. When reviewing a charge, distinguish ordinary wear, damage and other outstanding obligations [1].
A photograph taken at departure does not, by itself, explain when a mark appeared or what caused it. Compare it with the original inventory, move-in photographs and repair notices sent during the lease. The nature of the problem and the applicable obligations require review in each case.
Record the handover to close the tenancy
Article 7.691 of the same Code connects the obligation to pay accruing rent with the date the property is handed back. Document precisely when possession is returned and in what condition, rather than assuming that moving out or an informal message settles the entire closure [1].
The handover date, physical inspection and deposit settlement may require separate records. Identify any services or amounts still needing clarification. The absence of a final account should not obscure what was actually handed back.
Prepare a joint inspection
Arrange a walkthrough in advance and gather the agreement, attachments and inventory. Inspect the rooms, installations and items included in the lease. For each finding, record its location, description and the move-in document against which it can be compared.
Images are more useful when the original file is retained and the location shown can be identified. Keep wide shots and details without editing out objects or altering their appearance. Organize them alongside the related notices and replies.
What the handover record should contain
A useful record identifies the agreement and property, who hands it over and who receives it, the date, and the keys, remotes or access devices returned. Add the reviewed inventory and any observations each party wants recorded.
If meter readings are recorded, identify the corresponding service. State which payment receipts are available and which remain outstanding. Someone who did not attend the walkthrough should still be able to understand the handover.
Before signing language such as “balance fully settled” or “without reservation of rights,” review its effect on matters still disputed. Where there is disagreement, identify it in the wording and have a professional review the document’s scope.
Every deduction needs an explanation
Prepare an itemized statement: the amount requested, reason, clause or legal basis relied on, and available evidence. Compare alleged damage with the move-in condition and review who was responsible for addressing it. Separate accepted amounts from those still disputed.
A quotation may describe a proposed repair, but it does not by itself prove that the work was performed, that the tenant owes its full cost, or that the problem arose as alleged. Gather the records needed to assess each charge.
Apply the same approach to rent, maintenance and utilities: identify the period, payments recorded and balance claimed. Avoid combining arrears, repairs and penalties into a single unexplained figure.
Put the balance in writing
The closing account should start with the documented deposit and show applied amounts, disputed items and the proposed outcome. If agreement is reached, record who will pay or refund, how much, by which method and on what date. Keep proof of the transaction.
Do not assume there is one deposit-return deadline for all of Mexico. Review the property’s location, applicable law and contractual terms. A clause does not, by itself, settle every dispute over a deduction.
If the parties disagree
Request a written explanation and supporting evidence for the amounts claimed. Keep complete communications, receipts, photographs and handover records. Legal review can help identify what can be negotiated and the appropriate route for the case.
QP Abogados handles tenancy disputes involving properties in Naucalpan, Tlalnepantla, Atizapán and the boroughs of Mexico City. Before determining how to claim a deposit or balance, we review the location, agreement, handover records and circumstances.
Documents to prepare for review
- The agreement, renewals and signed attachments.
- Proof of the deposit and a payment history.
- The inventory and move-in photographs.
- Repair notices and the replies received.
- The handover record, keys and utility readings.
- An itemized list of proposed deductions and supporting records.
Sources
This article provides general information about properties in the State of Mexico. It does not replace analysis of the agreement, facts and law applicable to the case.