The Real Estate Encyclopedia
What is a security deposit?
Category - Home Ownership Questions - Lease & Renting FAQ's
The security deposit is the amount of additional funds your property owner requires when you rent the property. Typically, this amount is one or two months of rent.

The security deposit is held either by the property owner in an escrow account or in the property owner’s general account (be sure the agreement you sign clearly indicates where the security deposit will be held).

The agreement will include the terms under which the tenant is entitled to a refund of the security deposit. Most contracts stipulate that the refund must take place within the 30 days following the termination of the contract or the surrender of the premises, whichever occurs last.

The property owner has the right to deduct from the security deposit the cost of repairing any damage to the premises caused by the negligence, carelessness, accident or abuse by the tenant, including the tenant’s household or invitees and guests. Also deductible from the security deposit is any rent amount still due at the time of termination, cleaning costs, the cost to remove any personal property left behind and any late fees due the landlord.
 
Category(s)
Home Ownership Questions - Lease & Renting FAQ's
[edit]
Home   |   About Us   |   Contact Us   |   Patrons   |   FAQ's   |   Site Map
© 2008 - All Rights Reserved.
Thank you for visiting Real Estate Wiki - the leading dictionary, directory, encyclopedia and glossary for the real estate and mortgage industries .