Rental agreements often require a predetermined sum held by the landlord as a safeguard against potential damages to the property or unpaid rent. This sum, typically paid upfront, is refundable at the end of the lease term, provided the tenant fulfills the lease conditions. For example, a landlord might request a specific amount equivalent to one or two months’ rent.
This practice provides financial protection for property owners, mitigating risks associated with tenant occupancy. It incentivizes tenants to maintain the property’s condition and adhere to lease terms. Historically, such prepayments have served as a form of assurance in tenancy agreements, evolving alongside property laws and rental practices. The amount requested can vary based on local regulations, property type, and perceived risk.
