The Low Down on Security Deposits

There are many things in life that may require you to give a security deposit. Whether it is for turning on your utility services or staying at a hotel. Most commonly you may hear about it when dealing with rental properties. What is a security deposit? Why do I have to pay for it? And will I get this back? We will answer those questions and more, in this article.

What is a security deposit?

A security deposit is a sum of money that is due when you are in the process of renting a home or an apartment. This amount is usually determined by the amount of the rent. The security deposit and rent are usually the same amount and is typically due prior to you moving into the home along with your first month’s rent. The landlord then must hold the amount of the security deposit in an account until it comes time for you to move out.

What is the security deposit used for?

The security deposit can be used for various items related to the home. In most cases, you will get your security deposit back in full form, as long as you have kept the property in as good condition as when you moved in and paid all your rent and fees associated with your time there as a tenant. This is why it is vital to record and notify you landlord of any issues or damages prior to move in. That way there is accurate documentation that you will not be held liable for that damage.

Your deposit can be deducted from if you left a mess for the landlord to clean up. For example, if there was abandoned furniture left behind, you could be liable for the cost of labor for the maintenance team to clean it up as well as the disposal fee to get rid of the items. Additionally, if you have damaged the carpet, walls, door, or any other type of damage that falls outside the realm of “normal everyday wear and tear”, you also may be charged.

Additionally, if the cost of the repairs/fees is higher than the amount that your security deposit is, this does not mean you are off the hook for the remaining balance. The landlord has the right to bill you for the remaining balance for the damages.

Why do I have to pay for it?

The security deposit is to protect the integrity of the property. The tenants are responsible for relaying any maintenance issues that may creep up during their time occupying the property. This is important because even a small maintenance issue, such as a small drip or crack can turn into a huge deal down the line. The security deposit helps to provide a condition between the landlord and tenant that states, “As long as you pay your rent, treat the property with respect and don’t damage anything, you can have your security deposit back.”

When do I get the security deposit back?

After you move out, your landlord with perform a move out inspection. They then will compare the current state of the unit to the state of it prior to your move in date. Once everything has been inspected, and all your fees and rent are accounted for, you will then receive your security deposit back. If there were deductions made to your security deposit, your landlord will provide an itemized breakdown of what was deducted and why. If your security deposit does not cover the cost of the repairs or fees, you will then receive a bill with a deadline to pay by.

 

Overall, security deposits are important in the process of renting an apartment. You enter in the agreement expected to take care of your dwelling that you are renting and if you do, then you will end up with your security deposit returned. If you didn’t respect the property and you left a plethora of damages, then it is only fair that you are responsible for the cost of the repairs. You should always leave the space as you had received it, so that your record as a stellar tenant carries on. I recommend always clarifying with your landlord the details of the security deposit and what is expected. Communication and understanding is always important between the landlord and tenant.