Understanding the many different kinds of deposits tenants pay

By Tenant

There seems to be so many horror stories circulating about deposits. But most of them can be traced back to a lack of education on the different deposits asked prior to moving in. So I’ve compiled a list of all deposits, what they are and whether they are refundable or not.



I hope this helps you.

  • Security deposit – the security deposit is the money you pay your landlord that serves to protect the landlord in case the tenant destroys the property or violates the terms of the lease agreement. The security deposit can be used to pay for the damages, back rent, key replacement, and cleaning and so on. All these will be itemized upon moving out. The only time that you can use this deposit as your last month’s rent is if there is a part of your lease agreement that says so. And yes, the security deposit is always refundable.

  • Application fee – this is the money that you will be asked to pay upon the submission of your application form. If your application is approved, then the money may be applied toward your security deposit. But this fee will be refunded to you if your application is not approved.

 

  • Pet deposit – this is something that animal lovers like myself would have to bear as long as we are renting. This is additional money that we will need to pay in advance because our landlords are already expecting that our pets will incur some damages to their property.

 

  • Holding deposit – this is the fee paid if you want the apartment but you cannot move in just yet. If you pay and shell out some money for it before moving in, then your landlord would know that you are serious about keeping the place and they will not lose money because of you. Remember, when you promised to move in and you got approved, the landlords may have closed their doors on a handful of other prospects. If you don’t move in, then you cannot get the holding deposit back.

There are a host of other fees too but they come into effect once you’ve already moved in. Yes, moving in can get very expensive that is why it is important that you be very selective on the apartment. You don’t want to be moving every other month or so. That will definitely get you in debt with all the early termination charges and the costs of securing another place.

Now disputes also arise when dealing with money so for these issues, you can file a complaint and let mediation help. RPA has that option and this is the link to their complaint form: http://www.rentalprotectionagency.com/complaint_center.php

Edited on: Tuesday, February 19th, 2013 10:16 pm

10 Responses to “Understanding the many different kinds of deposits tenants pay”

My response: (We welcome stories, examples, explanations, answers and a touch of your personality)
 

Anonymous

February 19th, 2013 10:20 pm

That’s why as early as now, try to save as much as you can and get yourself a house. It’s best to be a homeowner – no more thinking about monthly rent obligations and you don?t have to think about security deposits, pet deposits, holding fees and a lot others.


Anonymous

February 20th, 2013 5:40 am

The most disputed of all these fees would be the security deposit. There’s no meter as to ordinary wear and tear and usually, tenants don’t read the lease well enough to understand the vacating procedures. No matter how well-written the lease is, if it’s not being read, it will not mean much,


Anonymous

February 20th, 2013 1:00 pm

Our landlord gave us a tenant handbook together with the lease agreement and we were allowed to 24 hours to go over everything and then sign the lease agreement. Without the time pressure factor, we better understood everything. So we knew that our security deposit comes with a $300 non-refundable which would go towards carpet shampooing and cleaning fees once we move out.


Anonymous

February 20th, 2013 8:20 pm

For us landlords, the pet deposit is rarely enough to cover all the damages your pets leave when you move out so we need to shell out of pocket just to fix everything. And we know and you know how difficult it is to collect from a tenant who has already left. If you get a list of costs in the mail, we’re sure you’ll question it and immediately think we’re squeezing more juice from you.


Anonymous

February 21st, 2013 3:40 am

I agree. For complaints on refunds and just about anything that involves money, pay a formal complaint first. It’s more affordable and may just be as effective as any other legal methods. But of course, your Plan B would be to sue in a small claims court.


Anonymous

February 21st, 2013 11:00 am

Not all of the security deposits are refundable. There are parts of it that may not be – like cleaning fees – but the amount of non-refundable security deposit will depend on the your lanlord-tenant state laws.


Anonymous

February 21st, 2013 6:20 pm

As always, we’re stuck on the issue of normal wear and tear when it comes to deciding how much should be taken off from your security deposit. Sometimes, even when it’s obviously wear and tear, the landlord would still make it sound like it’s the tenant’s fault.


Anonymous

February 22nd, 2013 1:40 am

I don’t know if it’s okay to have some parts of the security deposit non-refundable but I’m sure it’s illegal in most states to make the whole of security deposit non refundable.


Anonymous

February 22nd, 2013 9:00 am

To protect you, request that the security deposit and all those other refundable deposits be placed in a separate account.


Anonymous

February 22nd, 2013 4:20 pm

Application fees are always regulated in some states so it’s best to know your local tenant laws. Remember, ignorance of the law is not an excuse.


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