What is a security deposit" width="2500" height="1406" />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" width="2500" height="1406" />
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.
“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.
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.
