One month worth of rent
People also ask
What is the rental deposit for a rental property?
The rental deposit is usually equal to one month worth of rent, although it might be more. The landlord and tenant will agree on an amount. The landlord is required by law to invest the rental deposit in an interest-bearing account. Any interest accrued is returned to the tenant along with the deposit when they vacate the property.
When does a landlord have to take a deposit from a tenant?
Section 5 of the Rental Housing Act, No 50 of 1999 allows a landlord to take a deposit from a tenant prior to the tenant moving into the property. The amount of the deposit must be stipulated in the lease agreement. It is conventional practice to pay an amount equal to one-month rent as a deposit.
What happens to the deposit when a tenant vacates a property?
This deposit is returned to the tenant when they vacate the property. The landlord is required by law to invest this deposit in an interest-bearing account, with interest accrued being owed to the tenant. However, the cost of any repairs the landlord has to conduct for damage caused by the tenant is deducted from the deposit.
What is a tenant’s security deposit called?
Tenants usually give two payments to the landlord prior to moving into a rental house or apartment. They pay the rent for a specified period of time and they pay a security deposit. In some states it is customary to pay the last month’s rent upfront as well. The security deposit might be called a pet deposit, key fee or cleaning fee.