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What Is a Security Deposit?

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If you have ever signed a lease, you have most likely seen the words “security deposit”. What exactly is this? Why do you need to pay it? What does it cover? Continue reading to find out the answers to these questions!

What Is It?

The security deposit is a set amount of money that a tenant pays to a property owner prior to moving into the rental property. This deposit is held by the property owner for the duration of the lease. Following a move-out inspection, the proprietor will either return the money to the renter or use it to fix any damages that occurred during the lease term. You may receive all your money back, some of it, or none of it.

Why Do I Have to Pay It?

Not all property managers require a security deposit, but most do. Renting property comes with significant risk for the owner. The deposit helps property owners cover their bottom line and protect their properties from damages or irresponsible renters.

What Does It Cover?

Your security deposit can cover anything from property damage, unpaid rent, or unpaid utility expenses. When you sign a lease, you are liable for these things listed, and more. The property owner is not responsible for covering any of your unpaid expenses. If this turns out to be the case, money will be taken from your security deposit. Although, the property owner will not be able to deduct from your deposit for repairs in things like old appliances, worn-out carpets, or mold damage. These types of things are all their responsibility.

Still have questions regarding security deposits? Visit the website here or contact us at 248-919-8383. We would love to help answer any of your questions and address possible concerns.