What is a Security Deposit for an Apartment?

Today, more than 35% of the general public rent where they live. Some people are saving up for their dream home, while others just prefer renting and wouldn't have it any other way. When you find a new rental home, you can count on the property manager to collect a security deposit. What is a security deposit? Is this something that I need to know for my next place? These tips will get you started down the correct track.

What Is a Security Deposit?

A security deposit is a deposit collected after you are approved for the place and sign your initial lease agreement. The payment of the security deposit backs your rental agreement with good faith money. In most cases, the property management company will hold the security deposit until the end of the lease or when you move out. Until then, the deposit is kept on file and able to cover any financial issues that arise.

It Covers Any Damage or Losses

There are several reasons that you might not get your deposit back. Many people's deposits get spent on repairing damages that you caused. This could involve things like holes in walls, breaking glass, and damage to the structure. Physical damage aside, this deposit is also in place if you can no longer pay the rent.

Incidentals and Cleaning

Whenever you move out of an apartment, it takes some serious deep scrubbing and cleaning to get it ready for the next tenant. Most places use professional cleaning services to deep clean and sterilize. If you were particularly messy, created stains, or otherwise left your place in need of extensive cleaning, the deposit will take care of this as well.

A Deposit for Your Pets

Deposits might also include some different fees. Ask upfront what the deposit will go toward and whether there's a charge for your pets. Most places require a pet deposit if you have a dog, cat, or other animal. Pets require a deposit because they are messy and tend to cause damage. Paying a deposit for your pet is pretty standard these days. Ask if these sorts of fees are included in the deposit or if you need to put money down on a separate pet deposit.

How Much Is a Security Deposit Usually?

When you're prepared for the deposit, you'll know how much money to put aside and can expedite the process. How much is a security deposit? In most cases, apartments will charge a least one month's rent. Some will charge multiple months of rent, while others will charge less than a month. Communities like Hearth Hollow have affordable deposits that don't exceed one month's rent. You can typically expect to pay a $300 security deposit for a 1-bedroom apartment and a $400 deposit for a 2-bedroom.

How Long Does it Take to Get Security Deposit Back?

After you decide to end your current lease, you must clean out the place to return it to as close as you can get to the original condition. From there, the property manager will perform a walkthrough and assess what they need to spend and how much of your deposit you'll receive back. Expect to receive this back via direct mail in most cases. These communities will generally ask you for a forwarding address so they know where to send it. Confirm this information and ask the property its timetable for returning deposits. A little more than one-quarter of renters don't end up getting their deposits back. Roll up your sleeves to clean so you get as much of your deposit back as possible.

How Should I Approach Apartments?

Always have the security deposit in the forefront of your mind when you're apartment hunting. This is a big part of your move-in costs, so ask the apartment upfront how much they charge for a deposit. In some cases, the deposit might be more if you have poor credit or a shaky rental history. They typically also require you to pay your deposit in guaranteed funds. Find out what payment methods they'll accept and keep a copy for your records.