How Is a Security Deposit Handled After a Lease Expires?

When you rent a┬áToronto Premiere Suites, your landlord may ask for a security deposit. The amount of the deposit is usually equal to one month’s rent, and you may get it back at the end of the lease. What is a security deposit used for, and what are the odds that you get the full amount back when you leave?

What Is a Security Deposit Used For?

A security deposit is used to help a landlord pay for any repairs that need to be made after a tenant moves out. For instance, it may be necessary to repair a wall, replace a carpet or hire a professional cleaning crew before the apartment can be rented out again. However, the landlord is only allowed to use the deposit to pay for repairs if they were the result of something other than normal wear and tear.

What Are the Odds That You Get the Full Deposit Back?

The likelihood of getting your security deposit back vary based on the landlord and the type of apartment that you have. Most apartment complexes will charge a fee to clean your unit out whether or not you clean it before you leave. However, if you happen to be renting from an individual who happens to own a rental property, it may be possible to get the entire deposit back assuming that the apartment was left in good shape. Those who live in furnished apartments may also have a portion of their security deposit withheld to clean and sanitize the furniture.

What Happens If You Don’t Get Your Money Back?

A landlord can’t simply withhold a security deposit for no reason. If it is used to make repairs or clean the apartment after a tenant leaves, the tenant must receive an itemized list of everything that the money was spent on. In the event that no such list can be produced, a tenant may go to court to get the money back plus interest and other damages allowed by law.

Where Is the Money Held During the Rental Period?

Generally, the security deposit must be held in a segregated account throughout the rental period. If the account accrues interest, the tenant is entitled to that interest when the lease expires. In the event that a tenant signs a new lease, the money will stay in that account.

If you are in the market for an apartment, don’t forget to account for any security deposit that may be due when signing a lease. Planning ahead may prevent you from having to borrow money that you don’t have and may never see again. In some cases, a landlord may waive the security deposit based on your credit score and other variables. For more information visit the Premiere Suite website.

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