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Every lease agreement should include a security deposit clause. While each landlord has the ability to personalize this clause, the state in which your rental property is located may have certain security deposit laws that you must follow. Regardless of your state laws, there are certain basics about the security deposit terms that you should always include in your agreement.

The following is a sample. The lease clause should include the exact amount you will collect as a security deposit. Some states require you to hold the deposit in escrowothers do not.

You must let your tenants know the interest rate their security deposit will be held at. These clauses can range from a couple of sentences long to a few paragraphs long.

This Security Deposit is security that the Tenant will comply with all the terms of this Lease. The address of the bank is Insert Continue reading of Bank.

Interest due to the Tenant will be credited rent on each renewal date of this Lease.

If there is no Lease renewal, the amount of Interest owed will be returned to the Tenant according to the same terms set forth for the original Security What is heavy deposit rent. Within 30 days of the end of this Lease agreement, if the Tenant has supplied the Landlord with a forwarding address, the Landlord will do one of two things.

The Landlord will provide the Tenant with a written notice including an itemized list as to why the full Security Deposit amount is not being returned to the tenant and a check for any remaining Security Deposit owed to the Tenant after the allowed deductions have been made.

What is heavy deposit rent the Landlord sells the property, the Landlord will then be released of all liability to return the Security Deposit. The new property owner will take over full responsibility for holding and returning the Security Deposit.

This includes depositing the Security Deposit in an interest-bearing account, and notifying what is heavy deposit rent Tenant of the name and address of the banking institution and the amount what is heavy deposit rent the Security Deposit being held. This document shall serve as such notice. You would insert your own state law in this part of the Lease as well as the legal requirements in your state.

Check here for a list of security deposit laws by state. Many landlords will include an attachment to the Security Deposit clause, known as the Security Deposit Acknowledgment. The information provided on this website, and any outside information linked to, is for guidance only. It is not legal advice. Please consult legal counsel for advice specific to your situation. Updated April 06,

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