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Security Deposit Information

Do I need to pay a security deposit?
Virtually all leases require tenants to give their landlords a security deposit; usually one or two month’s rent.
Will it ever be adjusted if I renew the lease?
If a lease is renewed at a greater amount or the rent is increased during the term of the lease, the owner is permitted to collect additional money from the tenant in order to bring the security deposit up to the new monthly rent.

 

Do I earn interest on it?
Landlords are entitled to collect annual administrative expenses of one percent of the deposit. All other interest earned on the deposits belongs to the tenant, however, typically these interest-bearing accounts earn less than 1%.

 

What is the security deposit for?
A landlord may use the security deposit as reimbursement for any unpaid rent, or the reasonable cost of repairs beyond normal wear and tear if the tenant damages the apartment. Upon vacating, the tenant should leave the apartment in a clean condition, removing all personal belongings and trash from the apartment, and making any minor repairs if needed. If the apartment was painted by the tenant, then the tenant should restore to the original colors.