Security Deposit: What is it?

Security Deposit

What is it?

YES! As a landlord it is really important for you. Property rental security deposits can save your property in the event of damage by the tenant or the tenant who has expired and doesn't want to continue it.  

In general, a deposit is a security deposit whose amount is in accordance with the agreement between the landlord and the lessee.  This money is paid by the lessee before the start of the lease term.  If there is damage caused by the tenant, the deposit money will be used to repair the damage. If there is absolutely no damage or the condition of the house being rented is safe until the rental period ends, the deposit will be returned in full to the tenant. 

Security deposits or also called deposits have various amounts according to the provisions made by the rental owner.

For example, the rental price for a property is RM2,000 and usually the landlord wants a deposit of 2.5months from the rental price, which means a total of RM5,000 as the deposit fee. If at the end of the rental period the table provided by the landlord is damaged and requires a fee of around RM2,000 to repair it, the tenant's deposit will be taken/deducted, and the remaining deposit shall be returned to the tenants.

Benefits of security deposit for landlord

From the side of the owner/landlord, of course there are factors that the property he occupies is not safe from damage or even outstanding billings (indah water, electricity). For example, especially if a tenant brings a small child, there is a high possibility of accidental damage due to the actions of the tenant's child.  In addition to external factors such as leaking water lines or other disasters beyond the control of the tenant.  Worried that if an incident like this happened, there would be a rogue tenant who just ran away after causing damage to the unit. This deposit pays for all the damage so that it does not burden the repair costs that must be incurred by the unit owner.

What about the tenant?

Most tenancy requires a 2.5months of deposits as a commitment or a show of ability to rent the units. For most people, it is a burden to start with. A property with RM2,000 of rental, a tenant shall fork out RM5,000 + advance rental of RM2,000 to rent and yet to include miscellaneous costs like tenancy fee or deposit for access cards. With the current pandemic conditions, many are more aware of the alternatives of deposits.

This is where BlueDuck Zero Deposit comes in as a solution for the current rental market. With the ease of signing up, many tenants opt for buying a package instead, which landlords gets to rent out their units easier. With both tenant & landlord’s consent to proceed, an agent is now close a rental deal by attracting tenant faster, and landlord is now risk-free from irresponsible tenants. 

Find a replacement for your rental deposit today. Create a win-win situation for all parties involved. Buy online today thru www.BlueDuck.my and find out more from us via bit.ly/heyBD.