Security Deposit Policy

Landlords often collect and withhold an amount equal to at least one month of rent. These fees are called security deposits because they are intended to cover any unpaid rent, possible damage to the property, as well as the necessary repairs and maintenance costs. Unused deposits are generally returned to the tenant upon vacating the property.

Pay Rent in Advance

Lease or rent agreements usually contain provisions for security deposit. The agreement may stipulate that the deposit must not be applied as the last month’s rent. It may stipulate that the landlord may use the deposit to pay for damages caused by the tenant to the property or overdue rent. Some governments impose laws to govern the handling of security deposit, limit the amount that landlords may charge, determine the period in which the deposit must be reimbursed, and the circumstances under which the deposit may be withheld by the landlord. At any rate, a tenant needs to provide a written forwarding address to the landlord upon moving out.