Renting an apartment is one of the most common schemes for earning in the real estate market. But this type of activity is associated with some risks. Therefore, agencies use certain methods to protect the interests of both parties. This article will focus on the security deposit.
Flat rent
Since the rental process is a risky business, it is advisable for those who are going to earn money in their own apartment to use certain types of protection against potential damage or fraud.
A deposit when renting an apartment is one of the tools to compensate for the possible material risks associated with real estate. We are talking about damage to property and the condition of the housing itself. In addition, in the event of sudden insolvency of tenants, the security deposit will allow the lessor to avoid financial losses.
In most cases, a deposit when renting an apartment is equal to the amount of payment for accommodation for a month. But exceptions are possible. For example, tenants may be required to pay several months at once (3-4). If we consider the situation with luxury real estate, which is rented out, it makes sense to expect the requirement to pay the annual cost.
Lease insurance deposit
Some agencies take a slightly different approach to such a tool for compensation for possible damage. This is a scheme in which such a deposit is not considered as a security deposit or an advance payment for the last month of rent.
This money cannot be used to pay rent, their only purpose is to guarantee the financial security of the owner of the apartment in case of damage to his property by the tenants. Therefore, understanding what a deposit is when renting an apartment, it is worth considering this approach to the rental process.
Refund of a deposit
The peculiarity of using the insurance amount when renting an apartment becomes clear at the end of the lease. When the last month of living in an apartment is paid, the landlord takes real estate from the tenant, which implies an examination of the condition of the housing and property in particular.
If any damage was discovered (furniture is damaged or repair questions have arisen), then an insurance deposit, which is kept by the landlord, is used to compensate for it. The funds remaining after payment of the damage shall be returned to the tenant. In the absence of complaints, the landlord gives the tenant the full amount.
If a contract was used in the rental process, then there should be no problems with the return of the deposit. Thus, in this situation, a deposit when renting an apartment can be considered as a security payment.
How to draw up an apartment rental agreement with a pledge
Initially, it is worth noting that the current legislation of the Russian Federation does not give grounds for a clear definition of the conditions for the return of the insurance deposit. For this reason, on the basis of Article 329 of the Civil Code, both parties will have to independently determine what obligations the payment of the deposit will imply.
But if you apply the most common scheme that is used in contracts, then you should focus on the following points:
- payment of rent that does not meet the established deadlines;
- damage to property located in the apartment;
- unilateral termination of the lease without warning and before the end of the agreed period;
- lack of payment for rent, telephone calls and utilities.
It is very important to make sure that the contract for renting an apartment with a pledge contains all the reasons why a security payment can be withheld. It will not be superfluous for the tenant to check the conditions for the return of the insurance deposit.
It is advisable for each of the parties to make sure that all their interests are respected. For example, if the landlord insists that the tenant be liable for the termination of the contract prematurely, the tenant, for his part, may demand the same from the property owner.
Cash receipt
The issue of registration of a security payment must be resolved competently. Therefore, upon receipt of funds corresponding to the amount of the insurance deposit according to the contract, the owner of the apartment must write a receipt that the money has been transferred. This will save both the tenant and the homeowner from possible unpleasant nuances associated with paying a deposit.
The receipt must include the following information:
- landlord passport details;
- amount of payment accepted;
- date of transaction confirmation.
At the same time, considering what a deposit is when renting an apartment and what are the features of its registration, it is important to note the following fact: in some cases, the amount of the security payment can be divided into several months. If there has been such an installment plan, then the party accepting the money needs to write a receipt for each paid part of the deposit.
Compliance with this format of the conclusion of the transaction is important, because otherwise it will be difficult to prove anything in court.
How to take an apartment after the conclusion of the contract
Itβs important not only to know what a deposit is when renting an apartment, but also be able to competently protect themselves from the possible reasons for its non-return. We are talking about claims from the owner of the apartment regarding property damage. In order to avoid accusations that are not true, it is worth taking photographs of the state of repair, equipment and furniture at the time of entry.
After the photographs have been taken and attached to the contract, they must be certified by both parties by signature. Thus, the exclusion of potential contentious issues at the very beginning and at the contract level can be identified as the main reason for a problem-free lease.
By the way, some owners of residential real estate can not decide whether to make the amount of the security deposit in the income statement or not. According to many lawyers, this is not worth it, since these funds are not rental payments and are not used as income.
Possible difficulties
One of the common mistakes on the part of the lessor is the intention to use a security deposit under a lease as payment for the last month of tenants' residence. The risk in this situation is quite obvious: if a few days before the apartment is transferred, property is damaged or large bills for telephone calls are found, the owner will not be able to compensate for the losses incurred.
Another point worth paying attention to is the natural depreciation of property and repairs. Sometimes tenants are accused of such changes, as a result of which intense conflicts arise. But if you pay attention to the civil code, you can see that the owner of the apartment has no right to demand financial compensation for natural wear and tear.
An example is the loss of color saturation of curtains (fading in the sun), which the tenant had no effect on. But if, say, the curtains were spoiled by the tenant's active pet, then in this case the claims against him will be fair.
How to determine the amount of compensation
This issue is also relevant, since both sides have an opinion on the cost of the damage caused that may not coincide. A vivid example of such a situation is the breakdown of the refrigerator. The landlord may require that you completely replace this type of household appliances. The tenant, not agreeing with a similar solution to the problem, is able to offer compensation for the cost of repairs. Obviously, the difference in costs will be significant.
Therefore, it is desirable to designate such moments in the contract initially.
Having understood what a deposit is when renting an apartment, the owner should take into account the following principle: it is worth returning the amount of the security payment only after receiving all bills, including telephone ones. Then it will be possible to objectively assess the presence of any losses.
If you neglect this rule, then you may encounter the need to pay for the long-distance calls of former tenants.
Conclusion
A security deposit is used when renting real estate in virtually all civilized countries. This scheme has proved its practicality more than once. Therefore, it should not be neglected.