I recently inquired about an apt., and have a question about the security deposit.

Question

Found out the rent is $410 a month, apparently the security deposit is $500. I thought it was normally equal to one month's rent? Why would they be charging a higher security deposit than normal? It's not a whole apt. bldg, just a house divided into separate apts.

Answer 1

A landlord can pretty much charge whatever he wants as a security deposit. There may be some jurisdictions where this is restricted, but not many.  

Answer 2

There is no set rule stating that the security deposit MUST be equal to one month's rent.

Many states allow the landlord to collect up to the amount equal to 2 months rent as a security deposit.

Answer 3

The landlord can charge whatever he/she wants for security. Yes, sometimes it can be ridiculous and higher than the rent they are asking but a reasonable landlord knows that this covers any damages and problems (not paying rent etc.). Usually if all goes well with the tenant, at the time of moving you get your security back. Some states and some landlords even put the money in an interest bearing account, they may keep part of the interest accrued or may even give it all back to you as well. Depends who you're dealing with.  

Answer 4

A landlord can charge whatever he wants in security deposit. It does not matter what it is. If you agree to rent and stay there those are his terms, and you can either take accept it or you choose to find another property.

Answer 5

private house - more risk for owner-he can make the deposit whatever he wants - there are no rules to limits