Before we go into any type of an advice we all need to understand what the security deposit is. Experienced tenants know what this is about. However, the ones that are doing this for the first time need to understand the logic behind it. This fee that future tenants moving to Sudbury need to pay is, in my humble opinion, fair. The security deposit is an agreed upon amount of money that varies between hundreds and thousands of dollars. You pay this fee at the beginning of your tenancy and is returned to you upon the end of it. However, is there such a thing as security deposit deduction?
This fee can be a hassle for those seeking a new apartment. If nothing else, this is an extra cost that you really didn’t need on your plate right about now (especially if you were, for instance, hiring long distance moving companies in Canada, prior to this). One fact in remains – for the most part, it is unavoidable. The good news is that you can negotiate a security deposit deduction. Maybe you will not be able to avoid it completely, but paying less is still something.
Security deposit deduction
First, you need to understand that, in most cases, the landlord renting you the apartment makes a living out of it. Unless the two of you are close friends or family, your landlord does not know what to expect from you. This is why your landlord needs some sort of insurance. In case something goes wrong and you damage something, the landlord is the one that needs to cover the repairs. Now, the security deposit fund will not cover these repairs.
In case of nothing ever really gets severely damaged, you receive your deposit back upon leaving the apartment. In most cases, this deposit is stored in an interest-based bank account, and is not touched unless it is being returned to the tenant, or being used to cover for damages.
So, we learned so far that you cannot avoid the security deposit. However, is there such a thing as security deposit deduction? Yes, there is. We are going to provide you with a few tips and tricks on how you can lower your security deposit, or propose alternative ways of paying it.
Security deposit deduction tips
Since you have decided to go under rent, you need to prepare for all the costs that await. Different landlords will have different approaches to this, but almost all of them will demand a security deposit. And we have already explained why. Aside from this, some will ask for a few rents in advance, others will be satisfied with the first one paid alongside a signed contract saying you will be a tenant for a year.
However, how do you negotiate a security deposit deduction? Here are a few pieces of advice.
Do not be shy at negotiation
Basically, if you are not afraid to negotiate – you might accomplish plenty. The amount of money that you need to pay is not set in stone. So feel free to negotiate and try to get a good value.
First off, you will be able to negotiate the deposit amount as a whole. There is no minimum or maximum amount that you need to pay, so you could basically negotiate it completely. It can be either one full rent or several, or half of one. It all depends on your agreement. If you have a good tenant resume this might help your negotiating prowess. This is basically a reference from your previous landlords where they share positive experiences with you as a tenant. This alone can lower the security deposit significantly.
Another thing you might attempt to negotiate is to pay your security deposit in installments. So, instead of dishing out a large amount of money in advance – you can pay it in 6 installments and lessen the burden on your shoulders.
Whatever you may be aiming for, again, do not be afraid to negotiate. It might help you quite a bit.
Research the security deposit amount
Do not come unprepared. There are certain laws that dictate the maximum amount of security deposit you can be charged with. So, do your research before starting the negotiations. For instance, in Massachusetts, the maximum amount of security deposit your landlord can request is one month’s rent. On the other hand, the law in the state of Nevada is that the maximum security deposit amount is the number of three month’s rents.
However, some states such as Florida have no rules in regards to the maximum amount of the security deposit. Hence, when apartment hunting there you need to have your negotiation game on. So before starting the negotiation dance, make sure you know what your rights are.
Explore your new place first
In most cases, you should do a detailed visit to your new apartment before signing anything. The reason for this is some hidden damages that might already exist, dating from the previous tenant. You do not wish the landlord to charge you for such damages. So, in order to avoid this, you need to inspect the apartment in detail and point out anything that could be caused by the landlord or the previous tenants.
Your tenant cannot keep the security deposit money if you break your lease
You need to be aware of the fact that your landlord is entitled to the security deposit money only in a case you damage something. No other scenario gives them the right to keep the money. This money is stored in a trust account, and this money is yours. Upon you leaving the apartment, if everything is in order, the landlord needs to return you this money.
For everything else, Neeley’s Van and Storage is at your service!