Should I pay deposit before signing lease reddit?

Renting an apartment or house often requires paying a security deposit before officially signing the lease. This upfront cost can be a big financial commitment, especially for renters on a tight budget. When trying to decide whether to pay the deposit beforehand, there are some key factors to consider.

What is a security deposit?

A security deposit is a one-time upfront payment to the landlord to cover any potential damages or unpaid rent. It is usually equal to 1-2 months of rent. When you move out, the deposit may be partially or fully refunded, minus any deductions for damages beyond normal wear and tear. The security deposit helps protect the landlord if the tenant leaves the unit damaged.

Common uses of the security deposit

• Paying for damage to the unit beyond expected wear and tear
• Covering unpaid rent or utilities
• Cleaning costs if the unit is left dirty
• Repairing holes left in walls from hanging pictures, etc.

Should I pay the deposit before signing the lease?

There are pros and cons to consider when deciding whether to pay the security deposit upfront:

Potential pros of paying the deposit before signing:

• Puts you ahead of other applicants for the unit
• Shows the landlord you are a serious, committed renter
• May allow you to sign the lease and secure the unit faster
• Gives you more time to move in on your ideal timeline

Potential cons of paying the deposit before signing:

• No guarantee you will get the unit until the lease is signed
• Risk of losing the deposit if you change your mind
• Major upfront cost could impact other financial plans
• May be nonrefundable if you decide not to move in

Overall, paying the security deposit before the lease is signed can demonstrate your serious interest and give you an advantage over other applicants. However, it also represents a financial risk if you have a change of plans.

How does paying a deposit affect signing the lease?

Paying a security deposit before signing the lease agreement affects the rental process in a few key ways:

• Puts you ahead for the unit – Paying the deposit first shows the landlord you are very interested in the rental.
• Holds the unit – In competitive rental markets, paying the deposit may hold the unit until lease signing.
• May speed up move-in – The landlord can prepare the unit faster knowing you have paid.
• Adds financial risk – You could lose the deposit if you change your mind about the unit.
• No guarantee – The landlord can still rent to another tenant until a lease is signed.

The deposit alone does not guarantee or reserve the unit. But it demonstrates your intent to rent and can speed up the overall process. Make sure to get the landlord’s policies on deposit refunds in writing beforehand.

What if I change my mind and don’t sign the lease?

If you pay the security deposit but ultimately decide not to sign the lease, whether you get the deposit back depends on the landlord’s policies and local laws:

• Nonrefundable deposit – The landlord may state the deposit is nonrefundable once paid. This means you forfeit the deposit if you don’t sign.
• Partial refund – The landlord may keep a portion (e.g. 50%) as a fee for taking the unit off the market.
• Full refund – In some states, full deposit refunds are required within a certain timeframe if the tenancy doesn’t begin.
• Read the fine print – Check the landlord’s written policies before paying the deposit.

To avoid surprises, have a clear understanding in writing of when and how the deposit can be refunded. This helps protect your interests if your plans fall through.

What do current tenants and landlords say?

Current renters and landlords often have useful perspectives on paying the security deposit upfront. Here are some insights from landlord and tenant forums and Reddit threads on the issue:

Tenant opinions

• “I don’t mind paying if it means securing the unit I want.”
• “It’s risky – I asked for a provision that I get the deposit back if I don’t sign.”
• “I prefer to pay right before signing the lease, not before.”
• “As long as policies on refunds are clear, I’m OK paying upfront.”

Landlord opinions

• “I refund deposits on good faith if the tenant changes their mind.”
• “I make policies very clear upfront to avoid issues.”
• “A deposit shows commitment, but it doesn’t guarantee a unit.”
• “I don’t pressure tenants to pay early, but appreciate when they do.”

In general, tenants seem willing to pay early deposits to speed up the process as long as refund policies are fair. Landlords see early deposits as beneficial overall, but still approach units on a first-come, first-served basis.

How much is a standard security deposit?

While practices vary by state and city, a typical security deposit amount is:

• 1 month’s rent – Most common for unfurnished units
• 2 months’ rent – More common for furnished rentals
• Up to 3 months’ rent – Seen sometimes in very high-end units

However, there is no universal standard deposit amount – it depends on factors like:

• State laws and limits on deposits
• Local rental market conditions
• Whether the unit is furnished
• The tenant’s credit score and references

Be prepared to pay around 1-2 months’ rent upfront. Landlords may also accept higher deposits from tenants with poor credit or rental history.

Do all landlords require a security deposit?

Nearly all landlords require a security deposit prior to move-in, but there are exceptions:

• Some individual landlords may be flexible on deposits.
• Corporate landlords often have standardized deposit policies.
• In rare cases, landlords may waive deposits for stellar tenants.
• Some startup companies offer deposit-free leasing, earn depodit slowly.

While zero-deposit leases are uncommon, they demonstrate that some landlords are willing to adapt their policies in special situations. Discussing deposit alternatives with a landlord never hurts.

What are alternatives to paying a security deposit?

While most landlords require standard upfront security deposits, some alternatives are emerging such as:

• Surety bonds – Tenant purchases a bond instead of paying a deposit.
• Payment plans – Deposit is split across first 2-3 months of tenancy.
• Added rent – Higher monthly rent substitutes for the deposit.
• Guarantors – Third party guarantees deposit or damages.

However, these options are not yet widely available across rental markets. Paying the standard deposit is still the most common scenario for now.

Conclusion

Paying a security deposit before signing a lease can demonstrate your serious rental intent and speed up the application process. However, deposits also represent a financial risk if your plans fall through. Consider the landlord’s refund policies, get any assurances in writing, consult local tenant laws, and weigh the advantages against risks before paying an upfront deposit.