Security Deposit (Caução)

The caução (security deposit) is the simplest and most direct guarantee in a residential lease: the tenant deposits up to three times the monthly rent into a savings account tied to the lease. If the property is returned with no outstanding debts and no damage beyond normal wear, the landlord refunds the full amount plus the savings account’s index-linked return.

The law (Law 8,245/91, Article 38) caps the deposit at three months’ rent. This means that in the event of prolonged nonpayment — eviction proceedings take an average of 7 to 12 months in Santa Catarina — the deposit may not cover the landlord’s real exposure.