For those who are familiar with rental arrangements in India, security deposit is a familiar term. In the real estate market when you are looking for a rental property (residential or commercial), the landlord or the property management company asks you to deposit a certain amount as a security deposit.Usually, a security deposit is refundable. The amount of security charged depends on the tenure of your agreement, furnishing status of the house and the city you are living in. For example, if you are renting a flat or an apartment in metropolitan areas like Bangalore, Mumbai, Delhi, etc. you will be charged a security deposit that goes up to 3-6 months of your monthly rent. In some areas, the security deposit is equivalent to one month’s rent.What is a security deposit for?The security deposit or security money is a deposit which is used to either make fixes, repair any damages or cover up the cost for anything lost or stolen by the tenant.When to submit a security deposit?The security deposit is usually made prior to shifting into a rented accommodation. It’s like a token that you submit to the landlord confirming your intent to finalize their property for rent.When do you get a security deposit back?The landlords release your security deposit amount usually on the day of vacating the property. Usually, there is a certain amount which is deducted to cover up for the damages to the property during your stay. If there are serious damages, the whole security deposit can be withheld.Usually landlords return your security deposit, however, at times it can be a tough task to get your money back. In such cases, you must speak with them and try to negotiate. If nothing works out, you can write formally to him or hire a lawyer to take necessary action. I hope you have a fair idea of what is a security deposit, when you should pay the security deposit and how to get it back.
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What is a Security Deposit?
Riya Jain
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May 7, 2021
2021-05-07T12:48:49+00:00 2023-05-09T13:57:08+00:00Comment
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