What is a deposit when renting an apartment? An insurance deposit is a certain amount that is paid by clients planning to rent an apartment as security for their obligations under the contract, as well as some insurance in case of unforeseen damage to property. Also, a security deposit will help in case of evasion of duties, for example - from paying utility bills.
The concept of a security deposit is not fully spelled out in current Russian legislation. That is, at the time of conclusion of the contract, the lessor can itself put forward requirements regarding the guarantee amount.
The difference between a security deposit and a pledge
Let’s take a closer look at what a deposit means when renting an apartment. Do not confuse a security deposit with a pledge, because legally these are essentially different concepts. A pledge is a certain amount agreed in advance, which the tenant must transfer to his landlord to confirm the seriousness of his intentions. It is a kind of booking analogue. The security deposit must be transferred at the time of signing the contract of employment by the parties and must be the amount of the rent for one month of residence. A security deposit is the amount that will be compensation to the homeowner in the event of damage to property. It is inappropriate to stipulate an insurance deposit if the tenant is going to rent only part of the housing in which the owner himself will live. For example, when renting one room. Because in such a situation, the owner will be able to control the actions of the tenant and the condition of the property. If the amount of compensation is large, then it can be divided into several months. But all these subtleties should be spelled out in the lease. What is a deposit when renting an apartment is interesting to many.
Making a security deposit
An insurance deposit does not require a separate document, because it cannot be regulated by any legislative acts. All clauses of this agreement are prescribed in the text of the main rental contract. If during the transaction the contract is not drawn up, then none of the parties has guarantees, so they will not be able to demand anything from each other.
At the legislative level, a transaction for the transfer of real estate for temporary use requires that:
- the contract was in writing;
- the clause on the insurance deposit was introduced in the contract, which indicates its amount, date and risks, which it will be able to cover if necessary. It is also equally important to indicate the procedure for the return of the deposit in the absence of damage to property. What is a deposit when renting an apartment in Moscow? This is a common question.
Rules for making a security deposit
A security deposit at the time of concluding a housing rental transaction is a guarantee of the honesty of the parties included in the contract. The amount deposited is recorded verbally and digitally. If the transaction is carried out by a realtor, he must also sign an agreement as a guarantor. And this means that he will be obliged to take part in further possible conflict situations between the parties on the issues of property damage and return of the amount of the insurance deposit.
How to transfer the amount?
The amount of the security deposit when renting an apartment can be transferred in cash or using a bank. The second option is preferable, because the payment will be confirmed by a receipt from the bank.During cash payment, the owner of the property is obliged to sign a receipt of the money received or an act of acceptance of funds must be concluded between the parties. It is advisable to record the fact of payment in the contract itself.
Common mistakes
Quite often, an insurance deposit is replaced with payment for the last month of rental housing. This is not scary for the tenant, but the owner of the property can be threatened with the fact that he will receive payment for the last month, and no one can compensate him for the damage caused to the property. Sometimes tenants refer to the civil code, which states that property should be leased, taking into account normal depreciation. This leads to the refusal of compensation, since the damage is considered natural wear and tear.
What is a deposit when renting an apartment, now it’s clear. But what else is important to know?
Is it possible to save?
If the owner wants to rent a room without furniture in very poor condition, then the insurance deposit should not be present in the contract, because he practically does not risk anything. And in all other cases, it will be more profitable for the owner to hand over the property with an insurance deposit.
In order to prevent the owner of the property from attributing other people's debts to you, request a certificate from the telephone exchange and the management company about the absence of debt from him - in this case, you will be liable to the owner only for what you yourself have allowed.
You can take many photos from various angles, which will make it easy to see all the damage to property, so that the owner subsequently could not insist on the return of losses that you did not commit.
In order to really save money, you can agree with the property owner to divide the payment by several months, and indicate in the contract details related to the insurance deposit: in what amount and when it will be necessary to transfer funds. You can also save on the last rent for real estate: maybe the landlord agrees to accept it instead of paying for renting a house. To do this, you need to know what a deposit is when renting an apartment in advance. Many disputes about the taxation of the insurance deposit have no legal basis: this amount cannot be the income of the owner of the property, it is listed only as a guarantee measure and must be respected in compliance with the contract, which means that the owner will not be able to save on taxes.
The landlord can save: if the lease is terminated early, then the funds compensate for the loss of property payments. Without a doubt, all insurance amounts, as well as the conditions for the return of the insurance deposit, should be clearly stated in the lease. What is a deposit when renting an apartment?
What is said about the insurance deposit in the law?
The transfer of the insurance deposit should be based on a lease, which means that it is necessary to draw up a contractual relationship regulated by Chapter 35 of the Civil Code of the Russian Federation, and the tenant must pay a deposit or a deposit to rent residential real estate. Under a security deposit, or a deposit, as a rule, it is customary to consider a certain amount, which must be transferred to the homeowner in order to guarantee in case of damage to property.
If tenants change their minds to conclude a lease, then this amount should remain with the landlord, but if, on the contrary, the owner changes his mind, he must return the double amount. This is what a deposit is when renting an apartment in law.
To summarize
In practice, as a rule, when concluding a lease of residential property, the concepts of “security deposit”, “security deposit” and “payment of rent for the last month of residence” are often confused (by the way, in legal practice there is no such concept).In order to draw up a legally competent contract, independent clauses should be provided: on a pledge, with which a fee can be guaranteed for the last month of tenant's stay (returned if the last month is paid in the usual manner); about the insurance deposit, which is necessary in case of damage to the property of the owner (must be returned to the tenant in full); prepayment for the last month - is a one-time payment of the rental payment for several months.
Very often, if you make a deposit, you do not pay the last month of your stay. It is because of this that there is a violation of rights under a lease.
But if only the deposit is specified in the lease agreement, which was ultimately donated instead of paying the fee for the last month of residence, then with what money will the owner be able to compensate for the damage caused to the property, debts for utilities, telephone, Internet, etc.? It would be wise to provide both legal institutions in the lease. But it is quite obvious that paying several amounts at once (especially including a real estate commission) is very often impossible for tenants, and such issues should be resolved by compromises. So, we examined what a deposit is when renting an apartment.