The Tenants Deposit explained
The tenants deposit for residential rental is often times a point of contention when disagreements arise during or at the end of the lease term and it is thus vitally important that both the Lessor and Lessee understand how the deposit should be applied in all circumstances.
According to the Rental Housing Act, the landlord or his/her representative (Real Estate agency etc) is obliged to invest the deposit amount received into an interest-bearing account with an interest rate equivalent to a normal savings account for the duration of the lease.
The security deposit is just that, for security and to cover any damages in the property and is not to be used to pay for the tenants last month of rental for example.
The tenant can request a full statement and the deposit plus interest accrued minus any costs for repairs/damages/cleaning must be paid back to the tenant along with any applicable invoices for the costs associated with the repairs and/or cleaning.
Importantly should there be no need to effect repairs and/or cleaning then the deposit should be returned within 7 days of the lease concluding.
In the event that restoration is required then the landlord has 14 days to repay the deposit minus any costs incurred.
