Typically, the security deposit is equal to one month's rent. However, the security deposit allocation is based on the information provided on an application. Once all of this is reviewed, a score is recorded based on the risk the owner of the home would be accepting by approving an offer for you to rent the property. If the score is higher than 1 but still meets our minimum rental criteria, we still are able to work with the applicants, but we will ask for a higher security deposit (up to 2x the monthly rent) to protect the owner’s investment.
Factors that can affect the score of the security deposit allocation:
- Credit report: An applicant’s credit isn’t low enough to be grounds for automatic denial, but it isn’t necessarily good either.
- Proof of income: Low monthly income to rent ratio.
- Debt to income ratio: Ratio isn’t below the 50% minimum requirement but isn’t necessarily good either.
- Landlord references: Often, when this is the factor bringing up the score, it is not because the landlord gave a negative reference but because they did not return our calls and emails, so we were unable to get a landlord reference. In the scoring, no landlord reference is scored the same as a negative landlord reference.
- Negative findings in background check.
Please keep in mind that your security deposit is 100% refundable if you fulfill the terms of your lease and leave the house in the same condition as it was when you took possession, aside from normal wear and tear.