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Rent Deposits

A rent deposit is principally a sum of money which is held in an account, for an agreed period of time, to act as financial security in case of default by a party to a contract.

The money will not earn interest. When new leases are entered into, a proprietor will often require a rent deposit from the in-going tenant.

The terms of such a rent deposit will vary depending on the financial status of the tenant, but can involve the tenant paying up to 6 months rent in advance.

This amount is then held by the proprietor for the duration of the lease, or until the financial integrity of the tenant becomes established.