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Understanding Your Security Deposit

Before moving into an apartment or rental home, you’ll likely be required to pay a security deposit.

What is a security deposit?

The security deposit is money that will be held in a bank until you move out — in case it’s needed to pay for any damage to the home beyond "ordinary wear and tear", cleaning costs or sometimes unpaid rent or fees.

What is a security deposit

Security deposit amounts may be limited by state or local law and can vary based on the property. Some properties charge one to two months’ rents, some charge a few hundred dollars and occasionally properties charge no security deposits.

Be sure to include the future security deposit in your moving budget, along with the other up-front and ongoing rental costs.

What is “ordinary wear and tear”?

“Ordinary wear and tear” is the legal term for the expected breakdown of a property that occurs due to normal use over time. It means renters are not held responsible for damage unless it results from abuse or carelessness. Ordinary wear and tear can include things like minor scuffs or scratches but would not include broken light fixtures or significant damage.

Tip: Ask about flexibility

Check with your landlord to see if there’s any flexibility in the deposit amount or when you must pay it. Some properties may offer to rent to someone with a lower credit score if they pay a higher security deposit. Or a renter with strong credit may be eligible for a reduced or waived security deposit.

What to do before you move in

By preparing ahead of time, you can increase the chance of getting back the full deposit when you move out.

When signing a lease, ask for an itemized list of what deductions can be made from the security deposit. These may include deductions for property damage, unpaid rent and fees, poor maintenance, pet damage and itemized cleaning costs.

Do a walk-through of the home with the landlord when you move in and document any existing damage. Provide all documentation to the landlord. Pictures can help in this process.

Report — in writing — any repair needs, mold, leaks, pests, or other issues as soon as they happen. In fact, your lease may require that failure to report issues like water leaks or mold will make you responsible for the damage. Be proactive!

Check the lease before you make any changes to the property, such as painting the walls. If the change is not allowed, you will likely need to restore it to the original condition when you move out.

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