Signing a Lease or Rental Agreement FAQ
Learn about the laws that cover security deposits, rent increases, and late fees.
How much security deposit can a landlord charge?
All states allow landlords to collect a security deposit when the tenant moves in. Landlords use the deposit to cover unpaid rent and perform needed repairs or cleaning caused by the tenant's housekeeping. Half the states limit the amount landlords can charge, usually not more than a month or two worth of rent -- the exact amount depends on the state.
Many states require landlords to put deposits in a separate account, and some require landlords to pay tenants the interest on deposits.
How can I protect my security deposit?
More than a few landlords withhold all or part of a tenant's security deposit when the tenant leaves as a matter of course, to pay for house cleaning, carpet cleaning, and perhaps repainting. But unless these chores were necessary because of your unreasonable use of the rental, such deductions are not proper. Put another way, your security deposit should not go towards remedying ordinary wear and tear during your occupancy.
You can protect your security deposit by recording the condition of the premises when you move in, by using a move-in checklist and/or taking pictures. Some states require the landlord to do a walk through with you. For more information, see Take Steps to Protect Your Security Deposit When You Move In.
In addition, many states require landlords to put deposits in a separate account (and some states or cities require landlords to pay tenants the interest on the deposits).
Do landlords have to allow a grace period for late rent before they charge late fees? Are late fees legal?
Unless the lease or rental agreement specifies otherwise, in most states there is no legally-recognized grace period -- in other words, if a tenant hasn't paid the rent on time, the landlord can usually terminate the tenancy with a "pay or quit" notice the day after it is due. However, some leases and rental agreements do provide a five-day grace period for late rent.
Some landlords charge fees for late payment of rent or for bounced checks; these fees are usually legal if they are reasonable. The laws on late fees can be found in your state's landlord-tenant statutes.
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