Get SFN 41270 R

The security deposit is a substantial amount paid upfront by the tenant to the landlord at the time of moving into the rented property. It is held throughout the tenure of the lease and paid back (with or without deductions) once the lease is over.

Lease Deposits means the amount of prepaid rent and security deposits held to the credit of the Vendors by landlords of Real Property Leases as disclosed by estoppel certificates signed by such landlords.

A deposit is a sum of money that is held in an account. It may be secured in a bank for safekeeping or to secure goods for renting or purchase. Many different kinds of business transactions involve the use of a deposit.

Security deposits, on the other hand, are to be considered receivables on the part of the lessee and a payable on the part of the lessor.

Under the Rent Control Act, the security deposit should be kept in a bank under the lessor's account name during the duration of the lease and any and all interest earned by the security deposit shall be returned to the lessee at the end of the lease.

If it is a deposit, presumably you will get it at the end of the lease term. If so, there is nothing to amortise and the deposit should be accounted for as Other financial asset at amortised cost.

Do not pay a holding deposit without viewing the property. Only pay it if you are serious about taking on the tenancy. The landlord or agent could keep your holding deposit if you: decide not to rent the property.

The security deposit is a substantial amount paid upfront by the tenant to the landlord at the time of moving into the rented property. It is held throughout the tenure of the lease and paid back (with or without deductions) once the lease is over.