Security Deposit is the money paid by a tenant to a landlord as a surety while renting his/her premises. When the tenant vacates the house, with prior notification, the landlord is bound to return the security deposit. However, the landlord shall return the entire amount only if the tenant complies with the terms and conditions mentioned in the rental agreement.
For instance, if it is mentioned in the various clauses of the rental agreement that the landlord or owner can deduct 3 months’ rent if the tenant does not notify him about vacating the premises in 2 months advance, and if the tenant vacates the house without notifying the landlord in advance as specified in the agreement, then the landlord will have the right to deduct a part of the deposit.
As many of us would already know, tenants often land in trouble to pay hefty amounts of money as security deposit while renting properties. While arranging a huge sum of money itself is a big problem many tenants face, the biggest problem lies in getting back the money from the landlords. This is exactly one of the many motives of a well-drafted rental agreement that comes in handy with reliable solutions to such anticipated risks. Furthermore, regardless of what clauses you have included in the rental agreement, it is recommended that the landlord and tenant enter into a settlement agreement, once the parties decide to end the lease.