Rent Deposits – Your Protection against Claims Resulting From a Tenancy Agreement
If you decide to buy an apartment that is already occupied by a tenant, the vendor will hand you over all lease related contracts and papers as well as the rent deposit after the purchase. The deposit is paid by the tenant, when signing the lease with the landlord. A deposit comprises a maximum sum of three times the monthly net amount of rent and is intended to protect the landlord against claims resulting from the tenancy agreement, for example damages the tenant caused in the apartment or legal expenses.
The landlord is legally bound to set up a bank account for the deposit that is managed separately from other assets and pays interest at the standard rate for savings deposits at three months notice. The tenant is entitled to the interest earnings.
The tenant is reimbursed the deposit after having given notice, provided there are no claims against him or her. If the operating costs are still to be billed, the landlord may hold back a reasonable amount of the deposit, if it is foreseeable that the tenant will have to make subsequent payments for the operational costs. In this case the legally set period to repay the deposit is extended to up to twelve months.
Whether Prior to an Acquisition...
Even ahead of an acquisition, the Accentro Real Estate Encyclopaedia offers interesting facts and decision guidance: We will coach you through the first steps on your path to homeownership. For instance, it provides information on the process flow of a condominium purchase. It will also tell you what sort of documents you need in order to buy property, and where to obtain them.
... or after – Our Real Estate Encyclopaedia Provides the Answers You Need
Once you have bought a property, you may wonder who is going to manage your condo and how. After all, caretaking your property is one of your main obligations as a condominium owner. In addition to numerous tips and suggestions, you will find answers here to many questions involving the property management subject, such as: What does “individual freehold ownership” mean? What exactly do “condominium regulations” govern? And what does the term “condominium fee” imply? In addition, we elaborate subtle differences between terms such as “real estate management” and “corporate real estate management.”
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