What is a Security Deposit?

A security deposit (also called advance or biana in Urdu) is a sum of money paid by the tenant to the landlord at the beginning of a tenancy. It serves as financial protection for the landlord against potential damage to the property or unpaid rent.

How Much Security Deposit is Normal?

  • Residential properties: 1-2 months' rent is standard
  • Commercial properties: 2-3 months' rent is common
  • Furnished apartments: 2-3 months' rent (to cover furniture value)
  • High-value properties: Up to 6 months' rent in premium areas

When Should the Deposit Be Refunded?

The deposit should be refunded within 15-30 days of the tenant vacating the premises, after a joint inspection. The landlord may deduct for:

  • Damage beyond normal wear and tear
  • Unpaid utility bills
  • Outstanding rent
  • Restoration costs (if required by the agreement)

Tips for Tenants

  1. Always get a written receipt for the security deposit
  2. Document the property condition at move-in with photos/video
  3. Include clear refund terms in your rent agreement
  4. Do a joint inspection before moving out
  5. Ensure all utilities are cleared before departing

Tips for Landlords

  1. Set a reasonable deposit amount (don't overcharge)
  2. Document property condition before handing over
  3. Keep the deposit separate from personal funds
  4. Process refunds promptly upon tenant departure
  5. Provide itemized deductions if any amount is withheld