Are you a student or getting a job in a new city? Do you want to shift to another place? Don’t know anything about the renting process, and then the article will help you. When you take rent, you should hear the term, ‘security deposit.’ What is it? Why and how does it happen? All these questions revolve around your head. So, we are to help you with all of your queries.
What Is Security Deposit?
A security deposit for apartment seems like insurance against unpredictable occupants. The new renter pays a sum to the landlord or the apartment’s management team. The security deposit is given only once before entering an apartment from the renter.
You should also know about all the external fees like if you have any pet, then you may have to pay or not, and other expenses for parking, extra storage, administration and maintenance charges, etc.
Security deposit is given to save your money for expending in an immediate situation by your landlord. For example, after entering the house, if you face a problem with the water supply in your apartment, you call your landlord, and he will try to call a plumber. Then the money will deduct from the security deposit.
How Does It Calculate?
Five main factors are kept in mind while calculating security deposits. These are:
- The Cost Of The Monthly Rent Fee
- State Laws For Renting
- The Type And Quality Of Apartment Facilities
- Rental Application Of Potential Room Occupier
- Security Deposits Of Competing Properties
Amount OfSecurity Deposit
Rent depends on a few things. These are the size of the rooms, are it 1/2/3BHK (Bedroom-Hall-Kitchen), and are it near to the railway station or metro station or the main road. It also depends on the floor if it is on the top floor or ground, or mid-ground.
The security deposit lies on if the apartment is furnished or non-furnished. For furnished apartments, new renters pay one and half months of rent. And for non-furnished, it is to be paid one month of rent as the security deposit.
You must ensure that you can get back your security deposit for the apartment within 45-60 days if you are not damaging anything. As a tenant, you should care about your agreement and be bound to follow the rules and regulations.