Professional Documents
Culture Documents
Alina Wutke
1. What is a security deposit?
A security deposit is a sum of money or other value given to
the landlord, that is in addition to the rent paid in respect of
the residential premises, and cannot be more than one half
of the months rent.
2. Must a landlord provide a receipt for a security deposit?
A landlord shall give the tenant a written receipt stating the
amount of the deposit, the date of payment, and the
premises to which it applies. The security deposit is not an
asset of the landlord, but must be held by the landlord.
3. Does a landlord have to pay interest on a security
deposit?
Yes, a landlord shall also pay interest on the security deposit
for the time the landlord has had the security deposit. The
Rate of Interest is set by the Security Deposit Interest
Regulations. You may use the Security Deposit Interest Rate
Calculator to assist in determining interest on your security
deposit.
4. How much can be charged for a security deposit?
The amount depends on the type of rental agreement:
if the property is rented from week to week, the deposit
cannot be greater than the first two weeks rent;
for a monthly rental agreement, it must not exceed threequarters of the first months rent;
where the premises are rented for a fixed term of 6 to 12
months, the deposit cannot exceed three-quarters of the first