Security Deposit FAQs

Security Deposit FAQs 

Collecting security deposit in rental property is usual for landlords to ask tenants before tenants move-in because it provides landlords the assurance to cover the expenses if ever tenants break or violates the terms of the rental agreement. It can either be refundable or non-refundable depends on the agreement.

Reasons why landlords keep security deposit:

• Unpaid rent
• The property was damaged caused by the tenant.
• Property's missing items.
• Can be used for cleaning when tenant moves-out.
• Documented repair costs.

Here are a few pieces of information to help you understand things about security deposit in rental property.

• Q: What is a security deposit in rental property?
• A: A security deposit is a sum of money that a landlord collects from a tenant to ensure the landlord against the tenant's failure to fulfill an obligation or violates the rental agreement.

• Q: When to get the deposit back?
• A: Tenant usually would want to get their security deposit back as soon as possible to probably use it for the deposit of new rental place or a downpayment on a house. And a landlord must follow the state law, deduct necessary expenses if there's any and must return the deposit back normally within 30 days.

• Q: What if after certain days, the tenant still did not get the deposit back?
• A: Make a letter to landlord, explaining why the tenant still not getting the deposit back, and if the landlord failed to do so, tenants may file a complaint against the landlord in small claims court.

• Q: Should the landlord be notified before the tenant moves out?
• A: Under the landlord-tenant law have the right to receive proper notice before a tenant moves out of the rental property. How much notice required depends whether it's a fixed-term lease or month-to-month rental agreement and also on the state law. 

• Q: Why are tenants have to give a security deposit?
• A: It is to guarantee that a tenant will look after the property and pay their rent. Wear and tear are anticipated but damage to the property like a broken window, a carpet stain or pet scratches the wall or door is could be a tenant's responsibility. So asking tenants for a security deposit is just reasonable to cover any expenses for repairs and cleaning when a tenant moves out.