How much you really need to pay in rental deposits in Denmark

Now that thousands of hopeful students have received their admissions results, Denmark’s rental housing market is heating up once again. If your studies take place in Copenhagen, or you’re dreaming of living in another major Danish city, you should be prepared: the upfront cost of renting can be significantly higher than expected.

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For many first-time renters, it can be quite a shock to receive a contract that requires transferring between DKK 50,000 and 100,000 to a landlord before move-in. That’s a lot of money – and not something a typical student has saved up in advance. If you’re lucky, you might be able to borrow from family, but if that’s not an option, student loans (SU-lån) can offer a more affordable alternative to bank loans.

The total move-in cost for a rental property includes the first month’s rent, a deposit, and prepaid rent. Under Danish rental law, landlords may request up to three months’ prepaid rent (excluding utilities) and up to three months’ deposit. This means the maximum total amount a landlord can request upfront is equivalent to six months’ rent.

With the average price per square meter for a one-bedroom apartment in Copenhagen reaching DKK 183 (as of 2020 data from Boligportalen), the total cost can quickly add up.

Boligportalen’s data from January to May 2020 shows average square meter prices for one- to four-bedroom apartments in both Copenhagen and Aarhus – offering helpful insight when planning where to live.

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These average prices can help you determine not just where to live but also how much to start saving – both for rent and the initial deposit. Since the deposit is based directly on the monthly rent, these statistics give a clear idea of what to expect.

Even if you find the monthly rent manageable, it’s important to assess whether you can afford the full move-in cost. These additional costs might also include loan interest and repayments, especially if you’ve taken a bank loan to cover the deposit.

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Don’t panic — You’ll get some of the money back
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Prepaid rent typically covers the final months of your lease. This means the money is not refunded directly, but instead you won’t have to pay rent for the last few months, depending on how many months’ prepaid rent the landlord charged. A landlord may ask for up to three months of prepaid rent.

You also have a strong chance of getting your deposit refunded — if you take good care of the property. Previously, landlords could use your deposit to completely refurbish the rental after your departure. But since July 1, 2020, this is no longer allowed.

If you signed your lease after this date, you’re protected under the updated Danish tenancy law. Landlords can no longer demand the property be returned in a fully renovated state. They are only allowed to deduct from the deposit for necessary maintenance or damage caused by the tenant. So if you treat the apartment well, you’re also protecting both your deposit and your finances.

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High pressure can lead to risky decisions

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The large upfront payment usually happens under high pressure. With competition for rental homes increasing, many tenants feel rushed into signing contracts quickly — often making them more vulnerable to fraud and scams.

In October 2020, 19 hopeful renters lost a total of DKK 320,000 in deposit and prepaid rent to a single scammer. TV2 also reported on Hannah Houlind and Nikoline Bredmose, who lost DKK 28,000 in a similar case. In July 2021, DR told the story of Sidsel and Christopher, who were scammed out of DKK 23,000.

The truth is, even the most careful renters can fall victim to rental fraud — and it happens more often than you’d think.

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How to stay safe when paying your rental deposit

To avoid becoming part of this growing statistic, we strongly advise using a secure, third-party financial service that’s specifically designed to protect you.

PayProff was created to protect renters when transferring their deposit to a landlord they don’t personally know.

We do this by holding the funds until both parties have accepted the transaction. PayProff partners with Secure Payments, regulated by the Danish Financial Supervisory Authority (Finanstilsynet), which holds your deposit in a separate escrow account. Our first priority is ensuring your online financial safety.

In many cases, recovering your deposit is nearly impossible if you’ve transferred it directly and been scammed — but with PayProff, your chances of getting the money back are significantly higher.

So when you’re ready to send your hard-earned deposit to a landlord, just mention PayProff. If the person you’re dealing with is a scammer, chances are they’ll refuse. But if they are legitimate and see the benefit of using PayProff to facilitate the transfer, then you’re well on your way to establishing a safe and trustworthy rental agreement.