What does a deposit mean when renting an apartment?

What is a security deposit when renting an apartment?

The concept of “security deposit” is in no way regulated by various regulations. It can be assumed that it follows from business customs that are accepted in a particular field of activity.

It represents a certain amount, a kind of security deposit, which the landlord asks from the tenant when concluding the contract.

This amount may be required in case of:

1. Causing any significant damage to the rental premises.
2. Damage to furniture.
3. Destruction of household appliances.

Most often, the amount of such a payment is equal to one monthly payment for an apartment.

Difference between deposit and collateral

Quite often, landlords confuse these two concepts, but in reality it turns out that the essence of collateral and deposit are completely different.

1. The deposit is a certain amount that the future tenant must pay as a reservation for the intention to rent a specific apartment. However, in reality this method is no longer popular, since a security deposit is now used instead.
2. The deposit is usually paid directly when signing the completed lease agreement.
3. The deposit is equal to the cost of living in this apartment for one month. It is for this reason that it can be used as payment for the last month of stay. You cannot do this with a security deposit.
4. The deposit represents a certain amount of insurance that can be used in the event of damage to the property or the entire apartment as a whole.
5. The deposit amount cannot be used to pay debts for utility services, as well as for the provision of a telephone line.

However, people still consider the concept of collateral and security deposit to be something identical.

Reliable and profitable deposits with interest

Of course, every citizen, before opening a deposit account, looks for the most favorable conditions for him. Due to the instability in the country, it is better to choose not favorable and profitable conditions, but reliable banks whose license will not be revoked.

Of course, all deposits are insured, and each investor will withdraw their invested money even in such force majeure situations. But you will have to worry a lot and wait several months.

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Therefore, it is better to consider the possibility of cooperation with Sberbank. Moreover, at the moment it offers a wide range of conditions. The following programs work here:

1. “Save” deposit – implies a high interest rate on deposits in rubles and other currencies, but without deduction of interest and additional replenishment. The interest rate, depending on the amount, reaches 9.07% per annum. Deposit terms attract investors - from 1 month to 3 years. The minimum amount is set at 1000 rubles. This is an excellent option for storing money.
2. “Top up” - this option allows investors to set aside funds, which are then automatically capitalized to the principal amount. But the interest rate here is already slightly lower - no more than 8.07% for deposits in rubles.

   

3. “Manage” - this type of deposit allows you to fully manage your money - you can withdraw interest and deposit additional funds. But the interest is less - no more than 7.31% per year, and the minimum amount for opening a deposit is 30 thousand rubles.
4. “Gift of Life” is an excellent opportunity for investors to participate in charity. The deposit does not allow you to withdraw interest or replenish the account, but at the end of the quarter the bank sends 0.3% of the total amount to charitable foundations. The deposit term is set for 1 year. The interest rate does not exceed 8.35% per annum.

Sberbank also offers other types of deposits that may appeal to investors. But the advantage of this bank over others is clear. For an accurate representation it is necessary to give a specific example.

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How to withdraw your deposit from the bank? Video:

Cases when a contract can be concluded without a security deposit

There are several ways to conclude an agreement without using a deposit or to receive the full amount after termination of the agreement:

1. If there is a rental of real estate in which there are only bare walls, without any furniture and expensive repairs, then the landlord will not take a security deposit, since he has nothing to risk in such a situation.
2. In other situations, it will not be at all profitable for the apartment owner to rent out his property to an outsider, so he is required to pay a certain amount specified by him.
3. To prevent the landlord from pinning all the debts for previous tenants on the new tenant, before renting, you need to ask him to present a certificate from the local management company stating that there are no payment arrears in this apartment.
4. In addition, you can take simple photographs of the furniture and the entire furnishings, in which you can see all the cracks that existed at the time of signing the contract. In such a situation, the owner will not be able to insist on compensation for such damage, since it was caused before occupancy.
5. If it is not possible to pay the entire specified deposit amount at once, you can agree with your landlord to spread the insurance over several months. In such a situation, information about the deposit provided will be indicated in the contract only after the owner has received the entire required amount.
6. If the tenant does not have any complaints when renting out the apartment, you can agree with him that this insurance will be used as payment for the last month of residence.
7. It is worth remembering that information about the deposit must be indicated in the contract. Otherwise, if it is terminated, you may not receive a refund of the insurance.

How to open your deposit account?

If you have savings and decide to store them in a bank, study all the programs offered by banks and choose the most suitable option for you.

What should you pay attention to?

Opening deposits involves the following actions on the part of a potential investor:

1. Visit different bank branches and get their personal brochures with relevant information about interest-bearing deposits. You can also use the Internet without leaving your home and explore all the official websites of banks located in your city.
2. Contact a bank employee and find out all your questions. Only after choosing the most suitable program, go to the bank with the amount of money.
3. When drawing up a contract, pay attention to the “version” expressed by the employee; unfortunately, sometimes controversial situations may arise.

   

4. Listen carefully to all the conditions, paying attention to the terms of placement, the principles of possible early termination, the minimum amount and interest on the deposit.
5. Read the contract carefully before signing. Read each point and do not hesitate to clarify any unclear points.

Once you have read the agreement, you can sign it and deposit the money. At the appointed time, your accruals can come into your hands or be capitalized and rolled over along with the principal amount, which sometimes turns out to be more profitable.

A few words about documents

If you are an individual, you will not need anything other than a passport with a registration mark, TIN and pension policy. The account opening procedure itself takes no more than 15 minutes.

If you are a legal entity, additionally and previously you should fill out an application for affiliation, which can be easily done on the official website of the selected bank online.

If you have not previously been serviced by the bank you have chosen at the moment, you will need to open a current account, which can be done directly by contacting the branch.

How is insurance refunded?

1. A fairly common mistake is that the contract states that the payment received can be used as monthly rent for the last month of occupancy. For the landlord, such a clause is undesirable, since it deprives him of the opportunity to use the funds received as compensation for damage to furniture or the entire condition of the apartment in general.
2. In addition to this, there is also another rather important point, which landlords often keep silent about. According to the code, the item must be returned to the owner in good condition, but taking into account normal wear and tear. It is for this reason that the presence of such wear and tear is not a basis for collecting the insurance paid. Examples include the following situations:
   The curtains were faded in the sun.
3. Carpeting has changed all its characteristics due to prolonged use.
4. Minor scuffs appeared on the wallpaper.

All these situations are not grounds for using the insurance provided.

Errors that occur when returning and processing warranty funds

Any transaction with apartments, be it sale or rent, involves the expenditure of considerable money, and, therefore, each of the parties wants to play it safe and this is understandable. In order to protect yourself from possible misunderstandings, you should ask the landlord to write a receipt, which will confirm the transfer of money.

A receipt is one of the types of documents that can help save your strength, nerves and money. The receipt will need to be notarized, and it is also desirable that it contains the signatures of at least two or three witnesses.

Writing a receipt takes no more than 5 minutes, and subsequently it can save more than one day of wasted time on evidence and disputes. It is also recommended that the tenant keep a separate notebook, with special columns, in which to note the day and amount of repayment of the monthly fee, and of course, it is worth immediately getting a signature from the owner confirming this fact.

There is no legislatively special form for writing a receipt, however, according to generally accepted standards, it must be written by hand and contain:

• FULL NAME. both sides;
• Contact details;
• passport details;
• agreed monthly payment amount;
• the timing of it.

Despite some legal ignorance of our compatriots, the receipt has legal force in court and can be considered indisputable evidence.

Of course, the receipt does not have to be certified by a notary, but it is strongly recommended, since if conflict situations arise, its authenticity will need to be verified.

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It is necessary to understand that the receipt must indicate the real cost and the actual amount transferred, no agreements or verbal persuasion.