security deposit agreement

Know more about Security deposit agreement

Usually, all Landlords expect a security deposit or damage deposit from a tenant before he moves into a property. It is a single one-time payment and is mostly a month’s rent. The money is returned with interest on the deposit which is determined by each country or city’s stipulated regulations. Now it should be noted that a Security deposit agreement is not a receipt for rent.

Points in a Security Deposit Agreement –

The following points are included in a security deposit agreement –

1. This agreement must have both the party’s names, basic personal details, their signatures and dates.
2. The address of the property is clearly stated and the amount of the security deposit agreed upon, which is a month’s rent in usual.
3. It states that the deposit will be returned fully if certain conditions are met with. These conditions are clearly listed out-
4. That the resident does not use this deposit towards the rent.
5. The monthly rent is paid on time. Any fee or debt is also paid.

• No damages have been caused to the property or any other appliances provided beyond usual wear and tear.

1. Proper notice period as is agreed upon has been served. If not then the deposit may be applied towards the reduced or absent notice period.
2. The property has been cleaned and all personal property of the resident has been totally vacated.
3. All keys have been handed back.

• Also it might require the tenant to leave a forwarding address too.

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Sample Template Preview

  Security Deposit Agreement

The undersigned Tenant(s) have paid to Landlord the sum of $________ as a security deposit for the premises located at _______________________
______________________________________. Tenant may not, without Landlord’s prior written consent, apply this security deposit to the last month’s rent or to any other sum due under this Agreement.  Landlord, may, in his discretion, apply part or all of this security towards unpaid rents, late charges or any other charges due on the annexed lease agreement.
Within ______ days after Tenant has vacated the premises in Abroom clean@ condition, removed all personal effects and rubbish, returned keys and provided Landlord with a forwarding address, Landlord will give Tenant an itemized written statement of the reasons for, and the dollar amount of, any of the security deposit retained by the Landlord, along with a check for any deposit balance.

_______________________________        ______________________________
Tenant                        Tenant

_______________________________        _____________________________
Landlord                        Date