The amount of a deposit is usually one month`s rent, but can be higher. If the rental price of a property increases, the deposit held on the fiduciary service may not be sufficient. Studies have shown that landlords often keep incorrect deposits after tenants pull out, and often get away with it because it`s too hard to fight. [9] If the landlord subsequently increases the rent, he can ask the tenant to increase both the amount of the rent for the last month and the amount of the deposit on the new rent. One landlord usually cannot transfer without the tenant`s consent for use by the other. Similarly, the tenant cannot use the deposit as the rent for the last month. Below is an example of a surety clause in a rental agreement. These clauses can be long from a few sentences to a few paragraphs. If a lessor unduly respects a tenant`s deposit, the tenant may be entitled to additional damages exceeding the amount of the deposit. To do this, legal damages may result from a violation of a local law on consumer collection practices, damages that can amount to two or three times the amount of the deposit (in some states, such as California), consequential (resulting) damages, interest and, in rare cases, punitive damages. [5] [6] The lessor must repay the surety within a fixed period (usually thirty days) after the termination of the lease. However, the lessor may normally deduct for any unpaid rent that has not been validly withheld or deducted in accordance with the law and any reasonable amount necessary to compensate for damage caused by the tenant. Damage to pets can also be deducted.

Many homeowners add an installation to the deposit clause, known as a surety confirmation. This confirmation is a receipt that the lessor has received the tenant`s deposit and the amount received. Often, car rental agencies and car rental companies ask for a deposit to protect against possible damage to the car. [7] Once the car has been returned, it is checked for damage and, if damage is found, funds are deducted from the deposit to cover repairs and loss of value. Deposits are paid before moving in or taking charge of the property and these deposits are usually the same amount as the monthly rent. A deposit can be used to repair or replace equipment in a rental unit if the damage results from the tenant`s actions….