Transferring Security Deposit When Moving between Units
When you pay a security deposit to hold an apartment unit, it’s important to understand how it operates and what happens if your plans change. In situations where you want to lease a different unit, you may need to transfer the security deposit, but it depends on the terms of your agreement.
Understanding the Role of a Security Deposit
A security deposit is a sum of money paid to a landlord to hold a rental property. The main purpose is to protect against any damages or unpaid rent at the end of the lease term. In the case of a holding deposit, which is paid to reserve a unit, it serves a similar but distinct purpose. If you decide not to take the rental, the landlord may charge a fee to cover the time and resources spent holding the unit.
When Can You Transfer the Security Deposit?
If you want to move to a different unit, you can usually ask for the security deposit to be transferred to your new unit. This can be negotiated with the landlord, especially if the new unit is an upgrade, requiring additional funds beyond the deposit. Landlords may require a new lease agreement to reflect the transfer of the deposit to the new unit.
Verbal vs Written Agreements
The terms regarding the security deposit are critical. If you paid the deposit verbally, the terms are up to the agreement that you had with the landlord. Typically, the deposit is not refundable unless the terms expressly state it is refundable within a certain timeframe. If you decide not to lease the unit, the landlord may keep the deposit to cover the cost of missed opportunity.
Legal Considerations and Documentation
It is crucial to have a written agreement to protect your rights. Before paying any deposit, ask for a receipt or a document that identifies the payment. If you have not signed a lease and you’re still holding the property, the landlord may not be legally required to return the deposit. However, if the terms specify a refundable deposit, the landlord must return it.
For a formal transfer, ensure that the new lease documents reflect the transfer of the security deposit. In cases where you pay a holding deposit, understand the terms and any non-refundable fees. If you were supposed to sign a lease and make payments, but you didn’t, the deposit might be non-refundable as per the agreement.
What to Do If You Paid for Holding a Unit?
If you paid a deposit to hold a unit and are now looking to lease a different one, it’s essential to inform the landlord and request the transfer. You may need to provide evidence of the payment, such as a receipt or a written agreement, to support your case. In some cases, you might need to seek legal advice to understand your rights and options.
Keep in mind that failure to provide a lease agreement or move into the unit within the specified timeframe will often result in the landlord keeping the deposit. It is advisable to clarify these terms before making any payment, to avoid any misunderstandings.
Conclusion
Transferring a security deposit when moving to a different unit is possible, but it depends on the terms of your agreement and the specific situation. Always have a written agreement and understand the conditions for the deposit. If you face any issues with holding or transferring the deposit, consult a lawyer or take the landlord to small claims court for a resolution.