Seven Essential Things To Know About Security Deposits
When it comes to moving out, most tenants havethe same question: "When will I get my deposit back?" This is asubstantial sum of cash that tenants must recover as quickly as possible, oftento use for their next rental.
Here are the answers to the top concernsrenters have regarding security deposits.
1- Do I always have to pay a deposit?
Landlords have the option of charging incomingrenters a deposit or not. Typically, a security deposit is required bylandlords as insurance. The deposit protects you if renters fail to pay theirrent or just leave without first being accountable for any damages theyproduce.
2- How high can the depositbe?
The rental deposit cannot be more than threemonthly cold rents. A cold or net rent is the amount due to the landlord eachmonth, minus any prepayment or lump sum payment for service fees.
3- Does the whole deposithave to be paid at once?
If the deposit is cash, the renter may be ableto pay it in three equal monthly payments. The first amount is then required atthe start of the tenancy, followed by the remainder over the next two months.If the renter fails to pay the deposit on time or in whole, he may be evictedwithout warning.
4- What can the landlord dowith the deposit?
The landlord is not permitted to keep thedeposit in his personal possession; rather, he is required to manage the rentaldeposit independently from his personal assets. Tenants have the right to seekwritten verification of the deposit account.
Furthermore, the landlord is not oftenpermitted to utilize the deposit during the present lease. Suppose the formertenant owes rent, supplementary payments, or maintenance charges after therental term has ended. In that case, the landlord has the right to access thedeposit to pay off the obligation.
5- How do I get the depositback?
To reclaim the full deposit, renters must notowe any rent or utilities and must surrender the flat in the conditionstipulated in the rental agreement. This entails that renters must fixself-inflicted damages, and the unit must be newly repainted and wallpapered ifthe rental agreement's aesthetic repairs provision is applicable.
6- Am I allowed to “payoff” the deposit?
The deposit, contrary to common belief, cannotbe used for the final rental payments. Tenants must pay the whole rent by thelease's termination date and will only get their deposit returned once thetenancy ends.
7- When will I get thedeposit back?
There is no legalrequirement that stipulates when the landlord must return the deposit.According to common practice, the landlord should not delay more than sixmonths to investigate damage claims made by the tenant.
However, if the ancillary cost resolution isstill ongoing, something different applies. Very few renters leave after thebilling month to avoid further charges. Under certain conditions, the landlordmay withhold at least a portion of the deposit for the remainder of the billingterm.
