You may have seen a rental listing that says "no deposit" and thought it sounded too good to be true.
Sometimes it is. Other times it just means the security is provided in a different way than with your own cash.
Here's what "no deposit" actually covers in Denmark, and what to look for.
In short:
- Rental homes with no security at all barely exist. A landlord normally has the right to require a deposit.
- What does exist are alternatives to paying that deposit in cash.
- With a deposit guarantee, a third party provides the security to the landlord instead of your own money.
- The premium for a guarantee is not savings. It is not paid back.
- You are still responsible for the final move-out settlement.
- You can't choose Keyhole on your own. Your landlord needs an agreement with Keyhole first.
Do rental homes with no deposit at all exist?
Almost never. A landlord normally has the right to require security, and most do, because that's how they're covered if the rent goes unpaid or the home is damaged.
So when a listing says "no deposit", it usually means one of three things:
- The landlord requires prepaid rent instead, which is still an amount you need ready at move-in.
- The landlord accepts a third-party guarantee instead of a cash deposit.
- Something is wrong with the listing.
The third possibility is worth taking seriously. Rental fraud uses exactly "no deposit" and "move in fast" as bait. We'll come back to what to look for.
What is a deposit guarantee?
A deposit guarantee means a third party provides the security to your landlord, instead of you tying up your own money for the whole tenancy.
You pay a premium for the guarantee. That amount is not savings, and you don't get it back when you move out. In return, you don't have to put up the full deposit at move-in.
That's the real trade-off: you free up cash at move-in and pay for it with an amount you won't see again.
Cash deposit or guarantee: what's the difference?
Cash deposit
- It's your own money.
- It's tied up for as long as you live there.
- If the landlord has no valid claims at move-out, you get the amount back.
- You have to be able to put up the whole amount at move-in.
Deposit guarantee
- A third party provides the security to the landlord.
- Your own money isn't tied up the same way.
- The premium is not savings and is not paid back.
- You remain responsible for valid claims at move-out.
- It requires the landlord to have an agreement with the provider, and credit approval for you.
Which one suits you better depends on your situation. If you have the amount and it can sit still for a couple of years, a cash deposit is the cheaper route. If the amount at move-in is the obstacle, a guarantee is what makes the move possible.
What a guarantee is not
It's worth being precise here, because misunderstandings on this point are expensive.
- A guarantee is not insurance for you. It does not cover your own costs.
- A guarantee does not remove your liability. If the landlord raises a valid claim at move-out, it still has to be paid, and you're the one who owes it.
- A guarantee does not mean you can leave the home in any condition.
- The premium is not a deposit in different packaging. It does not come back.
How it works with Keyhole
Keyhole Guarantee is a guarantee solution for the Danish rental market. The framework is worth knowing before you count on it:
- Your landlord has to be a Keyhole Partner. If the tenancy isn't covered, you can't choose the solution yourself.
- Credit approval is required.
- The landlord receives the security, while you avoid putting up the cash deposit.
- You remain responsible for paying the final move-out settlement.
That last point is the one people most often miss. A guarantee moves the liquidity, not the liability.
What you can ask your landlord
Because the solution depends on an agreement between the landlord and the provider, it starts with the landlord and not with you. It's entirely reasonable to ask, and most landlords know the question.
You could ask, for example:
- "Do you accept a deposit guarantee instead of a cash deposit?"
- "Do you have an agreement with a deposit guarantee provider?"
- "If not, would you be open to looking at it?"
- "What exactly do you require as security, and how is it written into the contract?"
If the answer is no, it isn't wasted. You then know the amount you need ready, and you can ask about paying in instalments instead.
Careful: never pay a deposit before you have a contract
Whether you pay cash or provide a guarantee, the same rule applies.
- Never pay a deposit before you have a signed tenancy agreement.
- View the home, or have someone else view it, before you transfer anything.
- Transfer to an account you can document, and keep the receipt.
- Be sceptical if the landlord pushes for fast payment or will only communicate outside normal channels.
- A price or a security amount far below the normal level is a warning sign, not good luck.
Frequently asked questions
Do rental homes with no deposit at all exist?
Almost never. A landlord normally has the right to require security. What exists are alternatives to paying it in cash.
Do I get the guarantee premium back?
No. The premium is not savings and is not paid back.
Is a deposit guarantee insurance?
No. It's a guarantee provided to the landlord. It does not cover your own costs.
Am I still liable for damage if a guarantee has been provided?
Yes. You remain responsible for paying the final move-out settlement.
Can I choose Keyhole myself if my landlord doesn't use it?
No. Your landlord needs an agreement with Keyhole first. You can ask your landlord whether they'd look at it.
What if I'm not credit approved?
Then the guarantee can't be provided. Talk to your landlord about an instalment agreement for the cash deposit instead.
Are you a tenant?
Visit our Help Centre to see how a deposit guarantee works and what you can ask your landlord about.
Are you a landlord?
Book a free, no-obligation conversation with Daniel about how Keyhole could work for your tenancies.
