ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The average is one month’s rent, but some will charge up to three month’s rent. Most states have a limit to what can be charged, but there are some states that have no maximum. If everyone else in the area is charging one month’s rent for security deposit, the landlord may want to do the same, to lease the unit.

Detailed explanation-2: -Move-in fees are typically paid before you move into a rental unit or apartment building. These fees are nonrefundable and are sent to the homeowners association, usually ranging between $200 to $400, depending on the building.

Detailed explanation-3: -Most landlords require tenants to pay a security deposit A security deposit is money, usually 1 to 2 month’s rent, that a landlord holds in case the tenant causes any damage to the rental unit or breaks the lease and doesn’t pay rent.

Detailed explanation-4: -However, where the tenant vacates the house property during the financial year and by virtue of that, the landlord either adjusts the security deposit towards outstanding rent the tenant can then look at claiming deduction as the security deposit is in lieu of rent."

Detailed explanation-5: -Is returning a security deposit an expense? No. Returning a refundable security deposit that you previously received from a tenant is not an expense. You refund money paid as a security deposit at the end of the lease provided that the terms of the lease are met.