The Rationale For Requiring A Security Deposit From A Subletter

Written By: Aaron Watkins on June 27, 2010 No Comment

You should always get a security deposit when you are letting a place as it acts as your insurance policy. The deposit is taken at the outset and is kept by the property owner or an agency until the end of the lease.

When the tenant moves out, the property is inspected and if there have been no damages, the deposit is then returned to the tenant. If there are damages, part or all of the security deposit is retained by the landlord in order to offset repair costs. In many cases, the amount of the security deposit is one month’s rent, but it can be higher or lower depending on the circumstances.

Demanding a deposit when subletting a place is totally critical. If you do not have the money, then it is so much harder to extract it later when the damage has been done.

While you can always take someone who is subletting to court, it is a much more practical and just an easier task to just request the larger deposit to begin with.

Before taking a security deposit, the landlord and potential tenant should view the property together and come to an agreement on the initial state of the rental unit. If there are any pre-existing circumstances in regards to the property, these should be carefully noted in the rental agreement.

A good idea is for the property owner to take pictures of the place before the tenant moves in so there is evidence of the state of the place. After the lease is over, these photos can be used to make a comparison.

During the process of initiating a deposit the property owner needs to be aware of all the legal requirements. These will depend on which state you live in so make sure you know what your responsibilities and rights are from the start.

There might be requirements as to the account where the landlord must keep the security deposit. The landlord might also be required to refund any interest that was accrued on the deposit amount along with the deposit at the end of the rental agreement. These restrictions on security deposits can even vary according to municipality, so it’s important to understand local laws as well as those of the state.

The author has been blogging with respect to rentals for the previous three years. Furthermore, this author takes pleasure in blogging on New York neighborhoods, including Gramercy apartments along with Lower East Side apartments.