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Q.

Can Last Month's Rent be Used as a Security Deposit?

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1

3 months

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Hey there. A friend of mine had asked the same question a while back, whether can last month's rent can be used as a security deposit or not. So the straightforward answer is no, last month’s rent can’t be used as a security deposit. These two are separate with distinct financial obligations. I will explain this in more detail below.


Can Security Deposit be Used for Last Month's Rent?


See, the last month’s rent is a prepayment for the final month of the agreement. This is strictly to cover the rent for the last month before the agreement expires. When you talk about the security deposit, this is a refundable amount which is held by the landlord to cover any damages during the tenancy period or to cover any unpaid obligations. 


Unless it is specifically mentioned in the rent agreement that the last month’s rent can be used as a security deposit, using either of them to fulfil the other’s purpose isn’t permitted. 


This is all from my end. I hope this turns out to be useful to you.


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