Ready-to-Use Rental Agreement with Security Deposit
A rental agreement with a security deposit helps landlords and tenants record the essential terms of a tenancy, including rent, duration, deposit amount, permitted use, maintenance duties, inspections, and the conditions for returning or retaining the deposit. This ready-to-use template provides a clear starting point for residential rental arrangements.
A rental agreement with a security deposit records the terms under which a landlord allows a tenant to occupy a property and holds a stated sum to cover defined risks. A written agreement helps both parties understand rent, duration, property condition, responsibilities, and the rules for returning the deposit. The deposit should never be treated as automatic payment for the final month of rent unless the agreement and applicable law expressly permit it. Local tenancy laws may impose mandatory requirements on deposit handling, notices, inspections, and deductions.
Purpose of a rental agreement with security deposit
This document establishes the core legal and practical terms of a residential tenancy. It identifies the parties and premises, states the rent and payment schedule, and explains the amount and purpose of the security deposit.
A clear deposit clause can reduce disagreements at the end of the tenancy by specifying how the property's condition will be assessed, which deductions may be made, and when any remaining balance is due to the tenant.
What a security deposit is for
A security deposit is generally intended to secure the tenant's obligations under the agreement. Depending on applicable law and the contract terms, it may cover unpaid rent, damage beyond ordinary wear and tear, missing items, cleaning required beyond normal use, or other permitted charges.
Key information to include
The agreement should contain complete contact details for every landlord and tenant, the full address of the rental property, and the start and end dates or the periodic nature of the tenancy. It should also identify all occupants and any included furniture, appliances, parking spaces, or storage areas.
| Document field | Purpose | Frequent error |
|---|---|---|
| Property address | Identifies the exact premises being rented | Leaving out unit, apartment, or postal details |
| Rent amount and due date | Sets the payment obligation and schedule | Not stating the payment method or late-payment terms |
| Security deposit amount | Records the sum held as security | Failing to state what deductions may be allowed |
| Term of tenancy | Defines fixed-term or periodic occupancy | Using conflicting start and end dates |
| Condition inventory | Documents the state of the property at move-in | Not attaching photos or having both parties sign it |
Deposit terms and property condition
State the deposit amount, the date received, and any legally required method for holding, protecting, or reporting it. The agreement should also clarify the legal timeframe and procedure for returning the balance after the tenant vacates.
An inventory and condition report signed at move-in and move-out is particularly useful. It should list fixtures, appliances, keys, meters, existing defects, and photographs where appropriate.
Ordinary wear and tear
Ordinary wear and tear usually refers to the natural deterioration resulting from normal, careful use of a home. It is different from avoidable damage, neglect, unauthorized alterations, or loss of provided items; the distinction can be important when calculating permitted deductions.
Editable template
Document template
RENTAL AGREEMENT WITH SECURITY DEPOSIT
Place: ____________________ Date: ____________________
This Rental Agreement with Security Deposit (the “Agreement”) is made between:
Landlord: ____________________, of address ____________________, telephone ____________________, email ____________________.
Tenant: ____________________, of address ____________________, telephone ____________________, email ____________________.
The Landlord and Tenant agree as follows:
| Variable item | Details |
|---|---|
| Rental property | ____________________ |
| Tenancy start date | ____________________ |
| Tenancy end date / periodic term | ____________________ |
| Monthly rent | ____________________ |
| Rent due date and payment method | ____________________ |
| Security deposit amount | ____________________ |
| Permitted occupants | ____________________ |
| Included furnishings, utilities, parking, or storage | ____________________ |
- Premises. The Landlord rents to the Tenant the property described above, together with the included items and areas stated in this Agreement.
- Term. The tenancy begins on ____________________ and ends on ____________________, unless ended, renewed, or continued in accordance with this Agreement and applicable law.
- Rent. The Tenant shall pay rent of ____________________ on or before ____________________ of each payment period by ____________________.
- Security Deposit. Upon signing, the Tenant shall pay a security deposit of ____________________. The deposit may be applied only to amounts lawfully due under this Agreement, including unpaid rent, permitted repair costs for damage beyond ordinary wear and tear, missing items, or other lawful charges.
- Deposit Return. After the Tenant vacates, returns all keys, and provides a forwarding address, the Landlord shall return any balance of the deposit and provide any required itemized statement within the period required by applicable law.
- Condition Report. The parties shall complete and sign a move-in condition inventory. The Tenant shall return the property in substantially the same condition, excluding ordinary wear and tear.
- Maintenance and Repairs. The Tenant shall keep the premises reasonably clean, promptly report needed repairs, and not deliberately or negligently damage the premises. The Landlord shall carry out responsibilities imposed by applicable law.
- Use and Occupancy. The premises shall be used solely as a residence by the permitted occupants. Subletting, assignment, pets, smoking, alterations, and business use are: ____________________.
- Access. The Landlord may enter the premises only as permitted by applicable law and after any required notice, except in an emergency.
- Governing Law. This Agreement shall be governed by the laws applicable where the rental property is located.
Additional terms: ________________________________________________________________________________
________________________________________________________________________________
By signing below, the parties confirm that they have read, understood, and agreed to this Agreement.
Landlord signature: ______________________________ Date: ____________________
Landlord printed name: ___________________________
Tenant signature: ________________________________ Date: ____________________
Tenant printed name: _____________________________
Witness signature (if required): ___________________ Date: ____________________
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Responsibilities during the tenancy
The contract should allocate responsibilities for utilities, repairs, maintenance, insurance, access, and compliance with building rules. It should also state whether subletting, pets, smoking, business use, or alterations are allowed.
- Confirm the names and contact details of all parties.
- Describe the premises and all included items accurately.
- State rent, due date, payment method, and any permitted charges.
- Set out the deposit amount and return procedure.
- Attach a signed move-in inventory with dated photographs.
Keep copies of the signed agreement, payment receipts, notices, inventories, and photographs throughout the tenancy and until the deposit has been fully settled.
How to complete and sign the template
Read the entire document before entering information, and make sure all blanks are completed consistently. Each party should receive a signed copy, together with any addenda, inventory, or house rules referred to in the agreement.
- Enter the parties' legal names, addresses, and contact information.
- Insert the property details, tenancy dates, rent, and deposit amount.
- Complete the inventory and record the property condition at handover.
- Review local legal requirements and sign dated copies.
Frequently asked questions
Can a landlord keep the whole security deposit?
Only where deductions are permitted by the agreement and applicable law, and are supported by the tenant's obligations, such as unpaid sums or qualifying damage. Many jurisdictions require an itemized statement and evidence for deductions.
Can the deposit be used as the last month's rent?
Generally, no, unless the landlord agrees in writing and local law allows it. Rent remains due according to the payment terms until the tenancy ends.
Should the agreement include a move-in inspection?
Yes. A signed inspection report and photographs provide a practical record of the property's condition and can help resolve later disputes about damage or cleaning.