Searching for apartments can be a daunting task, especially when there are lots of listings on the market and you are unfamiliar with different rental terms. However, by learning a little more about the contracts you might be asked to sign, you can enter into a rental agreement confidently. Here are a few differences between security deposits and surety bonds, and why they are often requested during rentals. 

Security Deposits

While you may be an excellent renter, property owners are charged with the task of protecting the apartments they manage. To ensure that their property is protected against potential damage and vandalism, landlords may request a security deposit from you as a renter.

The amount of the security deposit will vary from place to place and is typically based on the amount of rent being collected each month. For instance, you may be required to pay an additional one to two months’ rent to cover any damage or issues that may come along during your rental experience. If you complete your tenancy, and the apartment is in fantastic shape, you may have the chance to receive your entire deposit back. 

Surety Bonds

Because paying a month or two worth of rent can be difficult for some tenants, some landlords request a surety bond from their tenants when renting apartments instead. In these instances, renters are required to pay a percentage of the deposit, typically between 17.5% and 20%, and this total is used to take out a surety bond on the property. 

This bond is secured with a business that acts like an insurance company, in case issues occur with the property. If apartments are damaged while insured with a surety bond, the tenants forfeit the percentage they were required to put down, and the property owner collects on the bond to repair the property. 

If you are thinking about renting an apartment, consider signing a lease at Belmont Run and The Studios at Belmont. Conveniently located in Lexington, KY, these newly renovated apartments are available in a range of different sizes and floor plan layouts, making it easy for individuals and families to find their perfect place. With amenities like 24/7 maintenance and a fitness center, you can enjoy a comfortable environment that you can really call home. Find out more about their availability by visiting their website or give them a call at (859) 254-8230.