The surety clause requires the payment of a deposit to protect the lessor from non-payment of the tenant`s rent and from property damage or, in the case of personal property, the lessor, from non-payment or deterioration of the property by the tenant. Each state has specific bail laws that landlords and tenants must comply with, including why you can withhold a tenant`s deposit. However, here are five of the most common reasons why a tenant should not expect their deposit to be refunded. use of the repository. [PARTY A] may use one of the bonds to correct [PARTY B`s] failure or to remedy the breach of this Agreement or to cover operating or maintenance costs [PARTY B] that would otherwise be payable. For example, if a tenant leaves a bag of garbage in the apartment, it is unreasonable to charge the tenant a portion of their deposit to cover your work. However, if the tenant has left garbage throughout the apartment, food in the refrigerator and many personal belongings throughout the unit, then yes, you may be able to keep some of the deposit to cover your expenses, as the tenant did not leave the brooms clean. A tenant is not entitled to the return of his deposit if he has not paid his electricity bills. You may be able to withhold a tenant`s deposit to cover all benefits they did not pay and that they had to pay as part of their tenancy agreement. Each lease agreement should contain a surety clause.
While each owner has the option to customize this clause, the state in which your rental property is located may have certain deposit laws that you must comply with. Regardless of your government laws, there are certain bases on the terms of the bond that you should always include in your agreement. Below is an example. Under normal circumstances, you cannot deduct a tenant`s deposit to cover normal cleaning costs. On the effective date, [PARTY B] [PARTY A] pays a bond of . [SECURITY DEPOSIT AMOUNT] (security deposit). 4. Effect of the landlord`s bankruptcy. In the event of a landlord`s bankruptcy, a tenant`s deposit may be lost.