Setting up a deposit account doesn’t need to be complicated. But there are a few important rules you need to get right from the start.

If you ask your tenant for a deposit, the money must be placed in a separate, blocked account in the tenant’s name. As the landlord, it’s your responsibility to open the account and cover the setup fee.

Before you ask your tenant to transfer the deposit, let’s go through the most important things you need to know.

In short:

  • You can require up to six months’ rent, though three months is the norm.
  • The deposit must be held in a blocked account in the tenant’s name.
  • You, as the landlord, pay the cost of opening the account.
  • The interest on the deposit belongs to the tenant.
  • A deposit paid into your own account is unlawful, and the tenant can reclaim it with interest.

How much deposit can you require?

You can require a deposit of up to six months’ rent, although three months is common in the Norwegian rental market.

It’s worth remembering that a higher deposit also means a larger upfront cost for the tenant. This may make it more difficult for some people to afford the move.

The amount should be clearly agreed in the tenancy agreement before the tenant pays it.

The deposit can provide security for claims connected to the tenancy, such as:

  • Unpaid rent
  • Damage to the property
  • Costs related to eviction
  • Other claims covered by the tenancy agreement

Where should the deposit be held?

The deposit must be held in a separate account in the tenant’s name at a financial institution entitled to offer deposit accounts in Norway.

This means the deposit should not be:

  • Paid into your personal or business account
  • Held in a shared account
  • Combined with ordinary rent payments
  • Kept in cash

The account is blocked, so neither you nor the tenant can withdraw the money independently during the tenancy.

The money still belongs to the tenant, but it provides you with security if you have a valid claim when the tenancy ends.

As the landlord, you can choose where the account is established, as long as your choice does not place the tenant at a substantial disadvantage.

Who pays the setup fee?

As the landlord, you pay the cost of opening the deposit account.

The fee cannot be passed on to the tenant or deducted from the deposit. The tenant is only responsible for transferring the deposit amount agreed in the tenancy agreement.

A simple way to avoid problems is to make sure the account is ready before asking the tenant to transfer the money.

Who receives the interest?

The interest earned on the deposit belongs to the tenant.

The reason is simple: even though the money is blocked and provides security for you, it remains the tenant’s money.

What if the deposit is paid into your account?

Perhaps the tenant has already transferred the deposit to you. Or maybe you both agreed to keep it in your account because it seemed easier.

Unfortunately, an agreement like this does not meet the legal requirements for a deposit account.

The tenant can ask for the money to be returned and may also be entitled to late-payment interest from the date the deposit was paid. This can apply even if both parties acted in good faith.

Any claims you may have against the tenant must be assessed and handled separately. Keeping the deposit in your own account does not give you the right to deduct money from it yourself.

The safest rule is therefore also the simplest: open the deposit account before accepting the deposit.

What happens when the tenancy ends?

If you and the tenant agree on how the deposit should be distributed, you can ask the financial institution to release it accordingly.

If you disagree, neither party can simply withdraw the money. The next steps depend on whether the claim concerns unpaid rent, damage, cleaning or something else.

We explain this process in more detail in our guide: How to have the deposit released after moving out.

A quick checklist for landlords

Before the tenancy begins:

  • Include the deposit amount in the tenancy agreement
  • Open a blocked deposit account in the tenant’s name
  • Wait until the account is ready before requesting payment
  • Never accept the deposit into your own account, even temporarily
  • Pay the setup fee
  • Give the tenant information about the account
  • Keep the documentation with the tenancy agreement
  • Document the condition of the property before move-in

Frequently asked questions

Can I require six months’ deposit?

Yes. Six months’ rent is the legal maximum, although three months is more common.

Can I keep the deposit in my account if the tenant agrees?

No. The deposit must be held in a blocked account in the tenant’s name, even if the tenant agrees to a different arrangement.

Who pays the deposit account fee?

The landlord pays the cost of opening the account.

Can I withdraw money to cover a claim?

Not independently. The money must be released by agreement or through the process established by law.

Who receives the interest?

The interest normally belongs to the tenant.

What if the tenant doesn’t have a Norwegian national ID number or D-number?

It may still be possible to set up the deposit correctly. However, the process and documentation requirements vary between providers.

Keyhole Secure also works for tenants without a Norwegian national ID number or D-number.

Make the deposit process easier from the start

Keyhole Secure is a digital solution for Norwegian deposit accounts. The deposit is held in a blocked account in the tenant’s name and released by agreement or through the process established by law.

The solution also works for tenants without a Norwegian national ID number or D-number.

Book a free consultation

Talk to Emma for 30 minutes about your rental process and how Keyhole could work for you.