What is a Security Deposit?
Updated May 5, 2021 – Security deposits are required as a guarantee to the property owner that you will pay your rent on time every month and maintain your utilities. Normally, it is paid along with the first month’s rent and any other fees that may be owed once your application has been approved.
A Fixed Amount
Your security is a fixed amount that, in most cases, is equivalent to “X” amount of months rent. If you have pets, the amount more then likely will increase by a specific amount per pet. That decision is left up to the landlord and may vary depending on the type of pets you own.
Must Be Paid Before You Move In
Most property owners require that your security deposit and “X” amount of month’s rent to be paid in full before you receive the keys to your apartment or rental property. This ensures that they have the money on hand in case, for any reason, that you default on your obligations, essentially breaking your lease agreement.
Where Does My Security Depost Go?
Once your security deposit has been paid, the property owner will put it in an interest bearing bank account. The money will remain in the account until it is returned to you or used to pay for any damages or fees that are owed if you default on your lease.
What Does My Security Deposit Cover?
A security deposit is used to pay for damage to the property caused by you, your pets, friends, or children. It is also used to pay for any fees associated with you not fulfilling the obligations included in your lease agreement.
Security Deposit Return
Understanding how a security deposit is used and why it is necessary is important any time you choose to rent a property. It not only benefits you but also protects the property owner from financial loss if any damage occurs or if you are unable to meet your obligations. Although every lease and circumstance is essentially unique, Zukin Realty tenants are encouraged to review this handy apartment move out checklist when they first move into one of our West Chester student rentals or one of our non-student residential rentals and review it again prior to moving out. This can help ensure the return of your full security deposit