Security Deposit is the guarantee amount that a tenant submits while opting for a tenancy of a property. This assures that if any unforeseen circumstances occur during the rental tenure, the landlords do not incur loss and especially when the tenant vacates the property, the amount is used to fix the wear and tears to bring the property to original condition.
The security deposits are generally charged as 5% of the annual rental contract amount for unfurnished properties, however for furnished properties the amount would start from 10% and may vary based on the quality of the furnishing done in the property.
This deposit is paid at the start of the contract along with the rent amount under the name of the landlord. And as discussed earlier it is merely a guarantee money, therefore the refund of this security deposit is issued at the time of vacating.
The deduction of the security deposit occurs after the quotes of fixtures are received from the final inspection of the property. These fixture generally include repainting of the walls, covering of nail holes and other touch ups that occur in usual maintenance. All the structural changes in the property are still borne by the landlord.
In case if the tenants agree to repaint by themselves and leave the property at its original condition, the security deposit is fully refunded if the landlord is happy with the condition of the apartment at the time of vacating the property.
For more information about security deposits, you can get in touch with Homes 4 Life.