What is a Security Deposit? and how does it work?

Question

I am Currently searching for an apartment to live in, and it is my first time having to deal with it. i was wondering if anybody can clearly explain to me what a Security deposit is? and do i have to pay it monthly along with rent? Thanks~!

Answer 1

A security deposit is a one time fee the landlord will request from you before moving in. It's generally equal to or exceeds one month's rent. Prior to moving in, the landlord usually asks for the security deposit + first month's rent.

The idea is that if you don't pay rent, it usually takes about 1 month to evict someone, and that will cover much of the rent for that period. It's also used to repair damages you may have caused, or for cleaning if you left the place in a mess.

Assuming you leave on good terms and the place is clean and in good repair, you should get it all back.

May I offer you a tip? Just prior to moving in, you and the landlord go in with a checklist for each room of the apartment, and note things. You should verify everything is functioning correctly, plus you should describe the condition of everything. New carpet, shabby carpet, old drapes, cracks in the tile, old fridge, new stove, new paint, etc. Also mark down things that are clean, or not clean. Make two copies of this list and have both you and the landlord sign and date each copy.

When it comes time to move out, you both can compare how you left things compared to how you found them originally. If the carpet was only so-so when you moved in, and needs to be replaced after 3 years, you shouldn't be dinged for that. That kind of thing.

Good luck.

Answer 2

The LL collects a ONE time security deposit the amount is usually one months rent. What that money is used for is if you happen to vacate before the end of the lease and you owe money the security deposit will be applied to any outstanding balance. Also if you do any damage to the apartment when you vacate the security deposit will be applied to the cost of any repairs that had to be made to the apartment. Some Management companies automatically retain a portion of your security deposit say $150.00 which they consider non-refundable deposit usually it's for painting the apartment after you leave. This will all be explained on the lease.

Some LL will place the sec deposit in either an interest bearing account or a non interest bearing account. If it's an interest bearing account you are entitled to the interest gained on your deposit over the term of the lease or until you vacate whichever comes first. If there is no damage to the apartment and the LL does not retain a non refundable portion per the lease, then they are obligated to refund your entire security deposit within 15 business days including any interest earned. The LL should notify you if the money is being deposited in an interest bearing or non interest bearing account.

Make sure you read the lease.

Answer 3

A security deposit is typically one months rent and in most states not more than two. To move in to an apartment most places will require one months security so if the rents 500 the security deposit will be 500. Security deposit's must be held in an escrow account and the landlord or property manager must let the tenant know the bank that its being kept at. In many states after the term of the lease is over the security deposit must be returned or settled in 30 days or the tenant may sue for double damages which means if the security deposit held is 500 the tenant may sue for 1000....

Answer 4

Usually when your rental application is approved, they will ask a security deposit (in some cases it is equal to first months rent) that in most cases is refundable when you leave the apartment in good order. Sometimes if there is pet involved, there may be an extra security deposit, this may not be refundable. This is allowed under the law to insure the landlord can repairs any damages which may be left when the tenant moves out. Below is a website that maybe helpful

Answer 5

A security deposit is a one-time payment that is usually equal to the cost of one or two month's rent. It is protection for the landlord in case you damage the apartment, or try to leave without paying for your last month's rent. This is standard practice.