One of the most curious details about renting a new house is how much deposit will be paid. It is the legal right of landlords to demand a deposit when renting their home. But of course within certain limits. In the article of the law on the subject, the frame of how much deposit the landlords can receive is drawn.
What is a deposit?
A deposit is a certain amount of money requested from the tenant when the new contract is concluded and is a method landlords use to secure themselves and their property. A deposit is not an income for landlords or an expense for tenants.
If the tenant does not deliver the house as it was received and damaged, this damage will be collected from the deposit. If the deposit received is more than the amount of damage, the remaining money is returned to the tenant. Or vice versa, if the deposit taken while making the contract is not enough to cover the damage, then the tenant has to give more money on it. These costs should be determined by mutual agreement; Landlords cannot decide for themselves the amount they will deduct from the deposit.
What is the deposit limit?
Landlords are free to ask for the amount of the deposit they will receive within the limits set by the law. In fact, some landlords require no deposit, while others may require very high deposits.
According to the law, the deposit amount requested by the landlord cannot be more than the total of 3 months’ rent. Deposits exceeding this limit are not legal rights and the tenant does not have to pay such a fee.
The deposit fee is among the most common disputes between landlords and tenants. The parties can resolve these disputes through court if necessary. Landlords can take a deduction from the deposit if they can prove damage to the home, but the tenant can also take legal action if they want to withhold the deposit even though there is no damage.
