Rental Deposit and Security Deposit: How Much Does It Cost, and Is It Refundable?
The deposit and security deposit are the first major costs almost every tenant has to pay before moving in. Yet many people are still confused about how the two differ, how much a rental deposit actually costs, and — most importantly — whether a rental deposit is refundable when moving out. This article clears up every point, along with tips to avoid having money withheld unfairly.
Deposit vs. Security Deposit: What's the Difference?
Although the two terms are often used interchangeably, a deposit and a security deposit serve different purposes. A Deposit is money paid to reserve a room before signing the actual lease, and it's usually deducted as part of the first month's rent once you move in. A Security Deposit, on the other hand, is money held to cover any damage that may occur during the tenancy, and it is refunded upon move-out if the room is left in proper condition as agreed in the contract.
How Much Do Deposits and Security Deposits Cost? Compared by Property Type
The amount required for deposits and security deposits varies by property type and asset value. General market guidelines are as follows:
Property Type | Deposit (Room Reservation) | Security Deposit (Damage Coverage) |
|---|---|---|
Rental room / General apartment | 1 month | 1 month |
Condominium | 1 month | 1–2 months |
Townhome / Single house | 1 month | 2–3 months |
The figures above are general market guidelines. Actual amounts depend on the terms set by each landlord or property developer. Always confirm the exact terms in the contract before transferring any money.
Are Deposits and Security Deposits Refundable When You Move Out?
As a general rule, the security deposit is refunded in full if the tenant has fully complied with the contract terms and there is no damage beyond normal wear and tear. The deposit, however, is typically already deducted as the first month's rent from the start, so it is not refunded again upon move-out. The security deposit is generally refunded within 7–30 days after the room is handed back, depending on the terms specified in each contract.
When Is a Landlord Entitled to Withhold the Security Deposit?
The tenant has outstanding rent or utility bills in the final month before moving out
Property inside the room is damaged beyond normal wear and tear (Fair Wear and Tear) — for example, holes in the wall or broken furniture
The tenant moves out without giving notice within the period required by the contract
Trash or belongings are left behind without cleaning the room before returning the keys
Steps to Ensure You Get Your Full Security Deposit Back
Take detailed photos or videos of the room's condition both on move-in day and before moving out, and keep them as comparison evidence
Always notify the landlord in advance, within the notice period required by the contract, before moving out
Clean the room and repair any minor damage yourself before returning it
Arrange for the landlord to inspect the room together with you on the day you return the keys, so both parties agree on the room's condition
Always request a receipt or proof of the refund transfer to prevent disputes later
What to Do If the Landlord Refuses to Refund the Security Deposit
If you've completed all the steps above but the landlord still won't refund the security deposit on time, tenants have the following options:
Send a written demand letter clearly stating the amount owed and the deadline for the refund
File a complaint with the Office of the Consumer Protection Board (OCPB), which has a dedicated unit handling rental contract disputes
File a lawsuit in a court with jurisdiction over consumer cases — these cases typically have no court fees and a process designed to be more accessible to consumers than general litigation
Frequently Asked Questions About Rental Deposits and Security Deposits
Is a rental deposit refundable?
Generally, the deposit has already been deducted as the first month's rent, so this amount is not refunded when moving out — unlike the security deposit, which is refunded if there is no damage or outstanding payment.
How many days after moving out is a condo security deposit refunded?
Generally around 7–30 days after the room is handed back, depending on the terms specified in each project's contract. Always check the exact timeframe before signing.
Do the deposit and security deposit need to be paid together?
They are usually collected together on the day the contract is signed or the keys are handed over, but the details depend on the terms of each landlord or developer. Always confirm clearly before making any payment.
A correct understanding of deposits and security deposits helps tenants plan their finances accurately from day one and protects their rights when moving out. Properties under the Pruksa Rent network clearly and transparently state deposit and security deposit terms in every contract. Visit the Pruksa Rent website to see details of projects you're interested in.
