When you sign a lease for your new apartment, you’ll pay a security deposit. If you’re a new renter, familiarize yourself with security deposit basics. This article breaks down essential information and how a security deposit benefits you. 

What Tenants Should Know About Security Deposits

Why Do Apartment Complexes Require Security Deposits?

The security deposit amount depends on the apartment complex, but most landlords ask for the equivalent of one month’s rent. This amount covers the company if you miss rent, damage property, or break your lease.

However, security deposits don’t cover damage from natural disasters, and accidents that cost more to fix than your deposit. You need renter’s insurance for natural disasters and major accidents.

How Can Security Deposits Benefit Tenants?

Security deposits also benefit you as a tenant. Accidents happen. For example, if you break a window shade, your deposit covers the expense.  Window shades cost a fraction of your security deposit. If there’s a hole in the drywall, mold in the bathroom, or a missing smoke detector—don’t worry—your deposit covers those, too.

Second, a security deposit covers your missed rent or forgotten utility bill. Your apartment manager takes the rent or utility amount the from your security deposit. You avoid credit inquiries, charge-offs, and collections agencies. Your credit score remains intact. 

Finally, your deposit may accrue interest! Your landlord may keep your security deposit in a separate, interest bearing account. You may gain a minimal monthly percentage on your security deposit. If you get your deposit back, you may also get that bonus.

If you want a quality apartment complex visit The Axis at 1435. Located in Lexington, KY, this complex has impressive amenities and updated units. Their one-bedroom and studio apartments feature vinyl plank flooring, chrome accessories, quality appliances, and LED fixtures. The Axis at 1435 has laundry facilities on-site for tenant convenience. The complex is three minutes from the University of Kentucky campus, across from the football stadium. To learn more about their luxury apartments, visit them online. You can also call (859) 286-9506 to set up a visit.