Part A:
- You pay the equivalent of one month’s rent in Security Deposit before taking occupancy.
Part B:
- You make payments to complete the Security Deposit
- Payments begin on the fourth month of occupancy.
- Each payment is equal to one-ninth of one month’s rent.
Example:
If the rent is $1,800 then the payments will be $200 monthly.
- Payments are made each month for nine consecutive months at which time Part B of the Security Deposit is paid in full.
- When the last payment is made on Part B interest begins accumulating on both Parts A and B.
- Part B can be paid in full at onset of tenancy allowing interest to accrue immediately.
The Security Deposit is less than two month’s rent because . . .
- You must buy the carpeting (only if you own a pet).
- When the Tenant owns the carpeting, the risk to Management is less, thence the Security Deposit is less.
- The price of the carpeting will range from practically nothing (shot carpeting) to full price (new carpeting).
- Management buys back the carpeting at termination of tenancy for the amount the Tenant paid for it minus the cost of damage caused only by pets (spots, odors, etc).
- Return of Security Deposit is in no way related to damage to the carpeting caused by pets. Pet damage to the carpeting relates only to the price of the carpet buy-back.
- If the Tenant acquires a pet while in tenancy, the carpeting must be purchased.
This policy is more attractive than the usual requirement that the Security Deposit and Last Month's Rent - each equal to one month's rent - be paid in advance. Details regarding the Security Deposit are denoted in the Rental Agreement
Terms of return of Security Deposit are designed to be as fair as possible whether or not the Tenant owns pets. If you have any better ideas, please do not hesitate to suggest them.