What you need to know about tenant security deposits
A security/damage deposit is money given to the landlord, which is held as security for the performance of an obligation or a liability of the tenant. It is not included in, or a part of, the rent for the property. The security deposit does not belong to the landlord, but must be held by the landlord.
Here is the list of Frequently Asked Questions about a security/damage deposit
- Must landlord provide me a receipt for a security deposit?
A landlord should give the tenant a written receipt stating the amount of the deposit, the date of the payment, and the address of the premises.
- How much can be charged for a security deposit?
The amount of the security deposit that a landlord can require depends on the type of rental agreement:
• Week to week
– 2 weeks rent
• Month to Month
– ¾ month rent
• Fixed Term
– ¾ month rent
For a weekly rental agreement, the deposit cannot be greater that the first two weeks rent;
For a monthly rental agreement, it must not exceed %75 of the first month’s rent;
For premises are rented in a fixed term of 6 to 12 months, the deposit cannot exceed %75 of the first month’s rent if the rent payment was on a monthly basis.
- When does a landlord have to return a security deposit after the tenant moves out?
The landlord should return the security deposit to the tenant within 10 days after the tenant moves out, unless the landlord has a claim for all or a part of the deposit. A landlord can keep a security deport with the tenant’s written permission.
- Do I have to show the receipt to get deposit back from the landlord?
No. if the tenant loses the receipt, they can still get the security deposit from the landlord.