Tenancy Deposit Protection : Is your Bond Funds Fair?

A rental security deposit is the security money you as a tenant, put down against possible costs the landlord or realty agency might incur during your stay, costs that are the lessee’s responsibility as per the lease agreement.

Realty Agencies and landlords will almost always hold a financial deposit, paid by you, the tenant. When you, as the tenant, renew your lease, your landlord or realty agency continues to hold on to the initial rental security deposit, and you will not have to pay another security deposit. When you decide to move from the rented house, the house will be inspected for possible repairs due to damages. If the house is deemed damaged by the realty agency or the landlord and under your lease agreement the repairs are the tenant's responsibility, the overall cost of these repairs will be deducted from your initial rental security deposit and the balance refunded to you. For a full rental security deposit return to being paid out to you, by your landlord or realty agency, you must adhere to all the terms of your lease agreement.

Tenancy deposit protection is essential to any tenant, and it is of uttermost importance that you understand the primary reasons that might cause your loss of the rental security deposit. To make sure your rental security deposit is fair there are a few suggestions you need to ensure.

Precise terminology in lease agreements

Sometimes the terms of your rental agreement are not clear-cut or precise, and, therefore, open to variations in the interpretation. Ensure that all the terms that pertain to your rental security deposit are concrete. Outline all the terms you may deem unclear or imprecise and discuss these terms with either your landlord or you realty agency.

Duration of pay

Ensure that your lease agreement clearly outlines the period it will take for your rental security deposit return to being affected by the landlord. Not having a clear-cut agreement on when to expect a refund of your rental bond sometimes leads to conflict between the landlord or realty agency and a former tenant.

Property damages

Because the landlord can use part or your entire rental bond to repair damages caused by you as a tenant, these damages being only those that fall outside of normal wear and tear, it is important that you clearly understand what type of damages fall within normal wear and tear. It is equally important that you minimize damages to any house while you are a tenant. Minimal damages to a house will assure you of your rental bond return.

Rent Payments

Under your lease agreement, you will find that it is a must for you to have fully paid your rent before you vacate the premises, failure to which your landlord or realty agency reserves the right to retain some or the entire amount of your rental bond. Since the rental security deposit is usually the same amount as your rent, the landlord is almost always assured of not suffering any loss. It is, therefore, important that you make all your rental payments on time even in your final month of tenancy.

Engage professionals

A second opinion of a lease agreement is important before you commit to one. Engage the services of professions to ensure you get the best deal possible. Professional realtors will see when a lease agreement is intentionally vague and aimed at profiting the landlord at the expense of the tenants. Professional realtors might also ask for the pre sale building inspection that will help in the understanding of the condition of the house before your tenancy. Residential property inspections contribute to outlining clearly the criteria for uncertainties in the lease agreement such as “reasonably clean”. Engaging professional service providers to repaint, clean and clear utility lines would also offer a solution to the otherwise problematic interpretations of "reasonable”.