A rental deposit, also known as security deposit is a monetary deposit given to a lender, seller or landlord as a proof of intent. Security deposits can be either refundable or non-refundable depending on the terms of the transaction. The deposit is intended as a measure of security for the recipient. It is a sum of money held in trust either as an initial part-payment in a purchasing process also known as an earnest payment, or else, in the course of a rental agreement to ensure the property owner against default by the tenant and for the cost of repair in relation to any damage explicitly specified in the lease and that did in fact occur.
There may be challenges to the amount required for security deposits in particular cities or neighbourhoods. Some districts could have landlords who charge higher security deposit rates as compared to the surrounding areas. To address the issue, security deposit loan is available through OMLP2P for individuals and families, finding places to move in to a new house.
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