Security deposits can be either refundable or nonrefundable. All of this depends on the terms of the transaction. A security deposit is intended as a measure of security for the recipient, and can also be used to pay for damages or lost property. But what are the main reasons why you could lose it?
Here, you’ll learn 5 ways you could lose your security deposit
1. Terminating a Lease Earlier
If you break the lease, your landlord can keep all or a part of the security deposit to cover the costs associated with this breach. However, if you have included an early termination clause in the lease, you’re safe.
2. Nonpayment of the Rent
Nonpayment of rent is considered a breach of lease. This is why your landlord can keep a portion of the security deposit to cover the lost rent.
3. When you Damage the Property
It is different than normal wear and tear. Damage would be leaving large holes in the walls, huge stains or holes in the carpet, extensive water damage to hardwood floors, cracked kitchen or bathroom countertop and broken windows or doors.
4. Cleaning Costs
If the cleaning necessary is excessive, and not the result of normal wear and tear, your landlord may be able to keep a portion of the security deposit. If you have left trash all over the apartment, a lot of food in the refrigerator, and numerous personal belongings all over the property, then yes, you are not going to receive your deposit. Your landlord will use it to cover your expenses. This is why it is really important to hire a move out cleaning service in case you just can’t clean the entire place. Many hire apartment move out cleaning services because it makes it easier for them to keep their security deposit.
5. Unpaid Utilities leave you with no security deposit
If you haven’t paid your utility bills, you may not be able to keep your security deposit. Your landlord would take it to cover any utilities you have neglected to pay. Of course utilities that you were required to pay as part of the lease.
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