Security deposit for the apartment

Renting an apartment often involves certain financial obligations that arise even before moving in. One of these is the security deposit, a term that frequently raises questions and uncertainties for both tenants and landlords. Below, we provide all the key information you need to know about the deposit, its purpose, and the relevant rules.

What is a security deposit?

A security deposit is a sum of money paid by the tenant to the landlord as a form of guarantee. It serves as a safeguard for the landlord in case of:

unpaid rent, damage to the apartment, or other obligations the tenant fails to meet.

The deposit is usually paid at the time of signing the rental agreement, and the amount depends on the arrangement between the tenant and the landlord. In practice, it typically equals one or more months’ rent.

How is the deposit amount determined?

The amount of the deposit is not strictly regulated by law and is usually agreed upon between the tenant and the landlord, as previously mentioned.

In the case of luxury apartments or properties with expensive furniture and modern appliances, landlords often require a higher deposit. For standard apartments, it’s common to request an amount equal to one month’s rent.

In some cases, landlords may accept a smaller deposit. However, from the landlord’s perspective, the amount should be sufficient to cover potential costs – such as unpaid utility bills, phone, internet, electricity, or cable TV.

How to define the deposit agreement ?

It’s important that there is a signed rental agreement between the tenant and the landlord, which clearly defines all terms of the lease, as well as their rights and obligations.

The agreement should explicitly state the amount of the deposit, as well as the conditions under which the landlord is entitled to retain it. This ensures the protection of rights and obligations for both parties.

How does the security deposit protect the landlord and the tenant?

Paying a deposit is standard practice when renting property in Bosnia and Herzegovina. Along with signing a rental agreement, it provides a guarantee that both the landlord and the tenant can protect their interests.

Financial security for the landlord

The deposit allows the landlord to protect themselves from possible debts or damages that may occur during the rental period. This reduces the financial risks associated with renting property.

Protection of property and coverage of damages

In the event of damage to the apartment, the deposit provides the landlord with a way to cover repair costs. This gives the landlord peace of mind, knowing their property is protected.

Guarantee of tenant commitment

Paying a deposit also demonstrates the tenant’s commitment and willingness to fulfill all agreed obligations. It encourages the tenant to take care of the property and regularly meet financial responsibilities.

As a professional real estate agency, we advise that the deposit amount and the conditions for its return be clearly defined in the rental agreement. A transparent agreement between both parties reduces risks and ensures a smooth and secure rental process.

It’s always best to approach renting with professional guidance and clear rules — this way, the apartment and the deposit become a source of security, not of concern or conflict.

Ena-Lemana S. 

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