Renting an apartment is a different experience for everyone. Some can do it with ease while for others, it takes a bit getting used to. One thing that seems to give people a little bit of trouble is the security deposit. A security deposit is what helps you secure the apartment you’re trying to live in.
Read on to learn what is a security deposit.
What is a Security Deposit?
There’s more to a security deposit than meets the eye. A security deposit is actually a certain amount of money that a tenant hands to their landlord along with their rent. On paper, this just sounds like you’re giving extra money to the landlord. However, this isn’t exactly the case. Consider a security deposit like a form of insurance. It’s a way of protecting you, specifically your money, in the event that the apartment is damaged or you’re not able to pay your rent.
Another thing you should know about security deposits is that they’re refundable. If you’re a tenant who takes care of their apartment and always pays their rent on time, the company that owns the building will give your security deposit back.
How Much Does a Security Deposit Cost?
The cost of a security deposit depends on the location you’re in or looking to move to. Although most places don’t have a set limit for a security deposit, there are a few locations that do, so keep that in mind. Let’s take Kansas for example. Kansas is one of those places that actually has a law set in place where you must pay a set amount for a security deposit. If the place is unfurnished, then you must put down one month’s rent. Or, if it is furnished, you’ll have to pay a month and a half’s rent instead.
Always remember to do some research on the building you’re looking to rent. The company may also charge you a fee of their own if it’s in their policy.
When to Pay For a Security Deposit?
You’ll have to pay your security deposit before you move into the building, along with your first month’s rent. However, it’s important to keep in mind that you have to pay the security deposit on time. Failing to do so can end up hurting your chances of securing your apartment.
When Does The Company Return The Security Deposit?
As with the amount you must pay, when you’ll be able to get back your security depends on the property and who the company is. In some cases, you might get your deposit back within two weeks. In others, you may have to wait as long as two months. However, there is another thing that you need to take into consideration. The company is able to take away a bit of your security deposit. This will only happen if the apartment you were in was damaged or not taken care of. Make sure to keep your apartment in good shape before you move out.
A security deposit plays a very important role when it comes to renting an apartment. However, the way it's handled, how much you have to pay and how much you'll get back all vary on the company.