What is a security deposit, and what does it cover?
A security deposit is an amount that you, as a tenant, pay to your landlord before moving into the rental property. The purpose of the security deposit is to protect the landlord against any damages to the rental property (beyond normal wear and tear) and to ensure that all financial obligations are met.
When the lease is terminated, the landlord can use the security deposit to cover repairs or outstanding rent if necessary. In other words, a security deposit is used as security against any damages or deficiencies in the property at the end of the lease.
Some landlords also use part of the security deposit to refurbish the property so that it appears in the same condition as when the tenant moved in. This can include painting, floor refinishing, and similar work. This will always be specified in your lease agreement.
How do I ensure that I don't pay for damages that were present at the time of moving in?
To distinguish between pre-existing damages that were present at the time of moving in and damages you might have caused during your lease, which could be deducted from your deposit, it's crucial that you report any issues to your landlord. This should be done within 14 days of taking over the lease.
Do I get my security deposit back when I move out?
Whether you get your deposit back when you move out depends on the condition of the property and the agreements you and the landlord have made in the lease agreement.
When the lease ends, which is when you vacate the property, the landlord assesses the condition of the property and any damages during a move-out inspection. This inspection also considers any issues you reported when you moved in.
If there are no damages that need to be repaired, the deposit is typically refunded to you, minus any agreed-upon expenses, such as restoration costs specified in your lease agreement.
Note: The content on this page should not be considered as legal advice.
If you require legal or financial assistance, you should consult with a qualified lawyer, accountant, or financial advisor.