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Security deposit

A security deposit is a sum paid by the tenant when moving in, held to cover any unpaid rent or damage beyond normal wear. It is returned when the tenant leaves, after an inventory of fixtures.

What is a security deposit for?

The security deposit protects the landlord against two risks: unpaid rent or charges, and damage beyond normal wear. Its amount, often expressed as a number of months’ rent, depends on local rules and market practice.

The return: the sensitive part

Returning the deposit is one of the main sources of end-of-tenancy conflict. To keep it objective, everything must be written up front: the amount in the lease, what it covers, the return period, and above all a detailed inventory of fixtures at move-in as a point of comparison.

Tracking the deposit over time

A deposit paid three years ago is easily disputed if no one keeps a record. A rental management tool holds the amount, date and conditions at lease level, making the return simple and hard to contest.

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