And why isn’t the amount the same in every community? There are a few variables that determine that number.
What is the average security deposit for an apartment? On average, the security deposit is equal to one month’s rent. So, you want to keep this number in mind when calculating how much money you’ll need to give your landlord at move-in. Many landlords require the security deposit and first month’s rent (and sometimes last month’s rent too) before they’ll give you keys.
Why do you have to pay a security deposit?
Landlords set security deposits to protect them from damage and non-payment. Security deposits are set based on four important factors: State law, cost of monthly rent, included amenities (elevator, W/D in unit, private parking, furnished vs. unfurnished, doorman on site, new renovations) and market competition. When anticipating how much a security deposit might be, consider those factors when making an estimate. State law may limit how much a landlord can set a security deposit for, so it is always a good idea to check into your local legislation if you feel the security deposit set was too high.
Apartment security amounts vary, but some states have set a cap. However, the amounts vary greatly, depending on where you are. For example, the cap in Arkansas is an amount equal to two months’ rent, while New Hampshire law caps apartment security deposits at $100 or one month’s rent, whichever is greater, barring that the landlord and tenant share a building. However, there are also a number of states that have no statutes relating to maximum allowable apartment security deposits.
Coming up with this amount of money may seem overwhelming. But, remember that if you’re in an apartment now, and you haven’t damaged it, you might have a security deposit coming back to you. You should receive it within 30 days after you move out (If you’ve earned its return, but you don’t receive it within 30 days, contact the office).
Where can I find the security deposit amount for a unit?
The amount owed for the security deposit should be on the application and must be on the lease. Before deciding on an apartment, make sure you have the dollar amount of the security deposit in writing.
How much can a landlord charge for a security deposit?
That’s up to the landlord. The average is one month’s rent, but some will charge up to three month’s rent. Most states have a limit to what can be charged, but there are some states that have no maximum.
If everyone else in the area is charging one month’s rent for the security deposit, the landlord may want to do the same, to lease the unit. If you’ve seen evidence of that, take it with you in order to negotiate.
Why would a landlord charge more than one month’s rent for the security deposit?
Some property management companies have a policy that the deposit is 1.5 or two times the monthly rent. However, another reason your deposit may be quoted as higher is due to your less-than-perfect credit history. The landlord may want to rent to you but must offset the risk by charging you a higher security deposit.
Can my security deposit be used as rent?
Your security deposit is not meant to be used to pay your last month’s rent. When the time comes for you to move, you cannot ask your landlord to use your deposit to cover full or prorated rent. However, if you paid the first and last month’s rent in lieu of – or in addition to – a security deposit, then you have, in fact, already paid for your last month, and shouldn’t be required to pay for your final month at the time, since you already did so upfront.
If your landlord allows your pet to move in, there will be an additional pet deposit due before the landlord gives you the keys. If your dog or cat is a service or therapy animal, the pet deposit should be waived with a doctor’s note. Bear in mind, that you are still financially responsible for any damage your service or therapy animal does to the apartment.
Pet deposits are either refundable or non-refundable. If your landlord doesn’t charge a pet deposit, it may be because they charge monthly pet rent. This can be anywhere from $10 – $30 depending on the type of property and location. Some landlords will charge pet rent in addition to a security deposit, so make sure you ask about the pet charges upfront.
When is the security deposit less than one month’s rent?
Some low-income tax credit properties have lower security deposits for those with good credit. In a market-rate complex, a lower security deposit might be offered to incentivize more people to move in.
Paying the security deposit and the first (and sometimes last) month’s rent can be tough, but it’s part of moving. Just remember, you do get your deposit back if you leave your unit in good condition when you move out. It’s part of the business. Once you get that part out of the way you can focus on making your new apartment feel like home.
What happens to my security deposit if I renew my lease?
Once you’ve paid your apartment security deposit, you might think you’re all done. However, sometimes when you renew your lease, the property owner will ask you to pay an additional security deposit. This could be because improvements have been made to the property or because rent has increased. The additional amounts paid are still eligible for a refund once you move out, so you aren’t contributing to a loss.
How do I get my security deposit back?
The best part about apartment security deposits? They’re refundable! If you take good care of your apartment, clean it sufficiently and follow all guidelines from the property owner, you’ll get your security deposit back after moving out. However, it’s not always that simple. Apartment security deposits are notoriously hard to get returned, so you must be adamant about caring for your apartment. Here’s the best way to ensure you will get most – or all – of your security deposit back:
- Take pictures and make notes during the initial walk-through. Make sure you agree to everything that is listed on the walk-through sheet before you sign it.
- Repair any and all damage that is your responsibility before you move out.
- Read your lease carefully and make sure to follow all of the stipulations for moving out. This may include having carpets professionally cleaned and providing a receipt upon your move-out. Make sure you don’t miss these little, and often hidden, stipulations. It could end up costing you a lot more money in the end, as landlords often up-charge for these services if they have to do it themselves.
- Follow your move-out process to a tee, including writing and delivering a proper Notice of Intent to Vacate.
- Replace any broken blinds yourself.
- Before filling any nail holes, make sure that your landlord intends to repaint after you leave. Landlords are supposed to do this, but some don’t. Those filled nail holes could cost you in the end.
- Take pictures and document everything you do. Keep receipts to prove that you left your old place in tip-top shape, minus regular wear and tear.
How much is an apartment security deposit? It depends!
Understanding the ins and outs of security deposits on apartments is crucial for both landlords and tenants. It’s essential to research and familiarize yourself with the local laws and regulations governing security deposits in your area, as they can vary significantly.
Whether you’re a tenant looking to rent a new apartment or a landlord seeking to set the right security deposit amount, taking the time to learn how much a security deposit is on an apartment is a step in the right direction toward a smoother and more secure rental experience.