Before renting a home (or renting out your own) it is necessary to know some key aspects of this process. We have talked you about different concepts and points to keep in mind, but you may still assail doubts. And one of the ones that most often generate confusion when carrying out this procedure is the difference between deposit and surety. There are many who think that it is the same and it is not so. We’ll tell you why.
Deposit and surety, how are they different?
Both concepts are very similar since they are amounts that the tenant contributes as a guarantee before entering the house/flat and that, if all the requirements of the contract are met, the owner returns once the rent has ended. Of course, there are four key differences between one and the other:
- Mandatory: While the surety is required by law, the deposit is optional as an additional guarantee. That is, the owner may or may not require it, but it is not something that occurs in all cases.
- Amount: For the surety, if it is for residential use, the amount is the equivalent of one month’s rent. The amount of the deposit is usually the equivalent of two monthly payments.
- Place of deposit: The surety is deposited with the competent body of the autonomous community where the property is located and it is the owner who in charge of making this payment.
- Correction: The surety can be updated after 5 years of the contract. The deposit does not have to be updated unless previously agreed.
Are you clear about what each thing is? Without a doubt it is necessary to know the differences between “deposit” and “surety” when formalizing a rental contract, it helps a lot to be safe and not be wrong in procedures like these.
