Explainer

Don’t Lose Your Rental Deposit: 6 Pitfalls To Watch Out For And How To Get Your Money Back

6 January 2025 | BY

New renters: If you’re wondering how you can keep your rental deposit secured, here are some common pitfalls to watch out for.

rental deposit cover image

Congratulations, if you’re moving out and renting for the first time. You’ve signed the Tenancy Agreement (TA) and given your landlord the rental deposit, which you should technically get back at the end of the tenancy━only if you do not breach the tenancy agreement. 

If you do breach the agreement, the landlord is entitled to use your deposit to offset losses. However, there have been cases of nightmare landlords who unreasonably withhold rental deposits. Should you be wondering how you can definitely get your rental deposit back, here are some common pitfalls to watch out for.

What is the rental deposit?

The rental deposit is a refundable deposit paid directly to the landlord prior to moving into the rental property. Once your rental lease is over, the deposit is to be refunded within 30 days. 

The security deposit amount depends on the length of your rental duration. Standard practice dictates that the security deposit is equivalent to one month’s rent per year of rental.

1. Know the difference between damage and reasonable wear and tear

rental deposit wear and tear

If you damage the property, the landlord is entitled to use your deposit to offset any costs incurred. Your landlord will have to provide proof of damage caused and bills for repair. However, if there is reasonable wear and tear, you should get your full deposit back.

Most TA should include a wear-and-tear clause and the party responsible for fixing these items. Examples of acceptable wear-and-tear include small scratches on the floors and walls, fraying of carpets, and superficial fading that occurs from sunlight exposure. Things like repainting of the walls should not come out of your security deposit. 

To prevent disputes, inspect the flat during the initial handover and take pictorial or video proof of every scratch, chip and crack in your new home. Compile it into a document with descriptions of the faults and where they’re located. 

Share the document with your landlord’s agents and have the landlord acknowledge it. At the end of your lease, take pictures of the apartment too. Should there be any dispute about the property’s condition when you are moving out, you will have this document on hand to show how the damages pre-date your tenancy.

2. Ensure you have a detailed inventory when moving in 

rental deposit detailed inventoryImage credit: TheLocal INN.terior

On that note, you should have been provided a detailed inventory of all the furniture and items in your rental home when moving in. This way, it cannot be said that items have gone missing and need to be replaced.

If you have requested for certain pieces of furniture to be removed, have this ask, and your landlord’s approval, in writing. Ensure that the furniture is accounted for to avoid any future disputes. 

Wanting to decorate your new rental space is understandable, but adding new furniture and not disposing of it is a no-no. Reworking your landlord’s furniture or painting a wall will require pre-approval too.  

Tip: you can request a pre-handover joint inspection with your agent a few weeks before the official handover date. This way, you can arrange for replacement and maintenance works and propose solutions should there be any issues.

3. Hire a professional cleaning service

rental deposit professional cleaning

At the end of your tenancy, you are expected to return the property in its original condition. If your landlord hired a cleaning service to straighten up the property before handing it over to you, you are likely expected to do so too before you return it to them. 

Engage professionals to do a deep clean and inspect their work before they leave. Keep the invoice and present them to your landlord’s agents at the end of the tenancy. Cleaning costs can range from $200 to $1,000, depending on the size of the property and how much cleaning is required.

Even if you aren’t required to hire professionals, doing so would save you a lot of time and effort. And we hope this goes without saying, but it’s best to take care of and avoid damaging your rental home. This way, the final clean up will be kept to a minimum too.

4. Service your air-con on time and regularly

rental deposit air-con servicingImage credit: Pinterest

Speaking of keeping invoices, make sure you keep all records and receipts of air-conditioning maintenance. The receipts should state what work has been done, and the dates on which these have been undertaken.

Most TA will require you to service the AC units every once a quarter. Depending on your landlord’s requirements, you may have to do a chemical clean regularly. 

 5. Avoid using your security deposit to pay rent or utility bills

rental deposit security deposit

Any unpaid rent or utility bills can also come out of the rental deposit. But this doesn’t mean you can go without paying rent or utilities in the last few months.

Forcing your landlord to rely on your rental deposit for rental payment is potentially a breach of the TA. Unless you have asked your landlord for permission to do so and have this in writing, doing so would likely give them grounds to take legal action against you.

Furthermore, if there are damages to the property or additional costs incurred when they take back the flat, more problems may arise. Your landlord may not have funds from your security deposit to repair whatever is broken as the money was used to cover the unpaid rent. If your landlord can provide evidence of the damage and that you have withheld your monthly rental payment, they are within their rights to take legal action.

6. Negotiate a diplomatic or exit clause

rental deposit exit clause

If you break your lease and or breach any terms of your TA, you would not be able to get your deposit back.

This is especially so if you’re an expat━it’s important to include an exit or diplomatic clause in the event you lose your job and have to return to your home country. In these cases, you can then break the lease and get your deposit back without penalty. 

For locals, you can try to negotiate an exit clause into your contract. The best case scenario is that you are in a financially comfortable position and have little to no chance of being in this unfortunate situation.

How to ensure that you get your rental deposit back

At the end of the day, you could do everything right and still not get your rental deposit back because of a dishonest landlord. Your landlord is legally required to return your deposit within 30 days, or as stated in your TA. If not, you can file and serve a small claim at the Small Claims Tribunal.

If you have a crooked landlord with a proven record of withholding their tenants’ security deposit, it may also be reasonable not to pay the security deposit’s equivalent amount of rent. If you do suspect you may be in this unfavourable position, it will be best to speak with a legal professional. 

For more articles on renting, check these out:


Image adapted from: Pinterest, TheLocal INN.terio

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