Every state and property has its own specific guidelines and rules regarding security deposits. Even the amount you will need to pay varies by state, properties, and even different areas under the same state. But the main point is what a security deposit is? Why do we need to pay? And that’s my friend will be today’s topic for this blog. So, without wasting any more of time, let’s see how it works-
A security deposit is a sum of money that a tenant pays to a landlord, lender, or seller of a home or apartment as proof of intent to move-in and care for the domicile. Security deposit usually refundable but it can be nonrefundable depending on the terms of the transaction.
Its amount can be a flat fee or can be based on the monthly rent amount. It is often equivalent to one or two months’ worth of rent. It might also be based partially on your credit score. So, if you have an excellent score then, you might be able to negotiate it and pay less than your counterparts.
REASONS TO COLLECT SECURITY DEPOSITS
Owners collect security deposits considering the following factors as their motives.
1. FINANCIAL PROTECTION: Here security deposit act as a safeguard for future damages that might occur during your stay, or for rent that may not be paid. But remember, the damages do not include any type of natural wear and tear. It will only be applicable if the damages are done by the tenant.
2. PROPERTY PROTECTION: By paying a security deposit, tenants have more skin in the game. Therefore, to get back full security deposit at the end of a lease, tenants more likely to treat the property with full care to avoid damages.
3. PET DEPOSIT: If a tenant has a pet, then they usually have to pay a pet deposit to landlords to move an animal into the property.
REASONS TO DEDUCT SECURITY DEPOSIT
A security deposit act as a protective measure, so there are certain circumstances under which only your landlord can deduct from it.
1. THE PROPERTY IS DAMAGED BEYOND NORMAL WEAR AND TEAR.
If the property is damaged or something needs to be replaced upon your departure, the owner can have the full right to deduct reasonable fees from your security deposit. Because if a tenant harms something on the property, it comes under the tenant’s responsibility to replace it.
2. YOU OWN FOR UNPAID RENT
You have any late fees or unpaid rent then your security deposit is at risk and could be reduced. This also includes if you don’t notify your owner enough before when you move out. So, if you are a tenant then try to avoid breaking a lease unless it’s totally necessary (but do inform your landlord beforehand).
3. YOU LEFT YOUR UNIT IN A MESS
Another common reason that you lose your security deposit is that when you leave the unit in an unacceptably messy state. The owner is then within their rights to hire a cleaning service to meet their standard.
Because of this, the audit is very important. Just take pictures of the place before you move anything in. You are required to leave the unit as clean as it was when you first move in.
DON’T FEEL INSECURE ABOUT SECURITY DEPOSITS
A security deposit act as a safeguard to protect your landlord’s money and property. If tenants maintain the terms of their lease and do not leave anything impaired, they should be able to get their deposit back unharmed. So, don’t worry! Security deposits are just an essential aspect of renting an apartment.