Hello. I have two properties out on rent and have taken security deposits for both places. So, I can tell you where does landlord keep security deposit. Usually, landlords hold the security deposit in their own accounts. Security deposit is kept for unforeseen circumstances that may come up during the tenancy period. Let me share more with you below.
Security Deposit As per the Model Tenancy Act of 2021
The Model Tenancy Act (MTA) 2021 addresses some of the critical challenges faced by landlords and tenants. According to the law, tenants need to pay the security deposit in advance. It also states that the deposit can’t exceed 2 months’ rent in the case of residential and 6 months in the case of non-residential properties.
But, the existing rental trend in cities such as Bangalore and Mumbai don’t necessarily follow this rule, because of the high living cost.
As per the MTA, the landlord holds the power to use the security deposit amount for any intentional damage to the property or/and non-payment of rent. The law also states that the landlord can deduct arrears or major repair expenses from the security deposit before they refund the remainder to the tenant.
This is all I have to share. I hope you now know where does a landlord keep a security deposit.
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Authors Of The Question
Where Does Landlord Keep Security Deposit?
dheeraj
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2 days
2024-12-09T11:01:41+00:00 2024-12-09T11:01:42+00:00Comment
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