When To Pay A Security Deposit?

[luisparis]

Hi

I'm supposed to sign tomorrow a rental contract including a 400 000baht security deposit and the owner would like the deposit paid tomorrow, although we're only supposed to move in 2 weeks later, after some minor renovations are settled in the appartment.

does it sound like a standard practice?

Thanks

Luis

[longball53098]

I don't know what is normal.

I have a small one room condo that we rent out.

We charge a security deposit equal to one months rent if the lease is for 6 months. Equal to 2 months rent if a year contract.

We ask the renter to pay the first months rent and the security deposit at the time of contract signing at which time we present the keys to the renter. Typically this occurs a day or two before the actual move-in day and when all repairs and other "get ready" things are finished. We ask that they do not "officially" live in the unit but really don't care if they move in a day early.

Now we only have one small unit to worry about. If I was in the rental business and had many units to worry about. I would think "normal" practice would be the day you sign the rental lease and receive keys to occupy the place is the day you pay the deposit and rent.

Any payments made before this the owner is using your cash to finance their business and make possible interest on your money and you cannot use the unit you rented.

I your case they want the cash to potentially make the needed repairs using your cash. No way Jose'

[bkkjames]

Just sounds to me like the owner wants some $ assurances that you will in fact move in before he proceeds with doing the renovations.

[quiksilva]

Its usually paid upon signing legally binding agreements. If renovations have been agreed as part of the deal, do they also form part of the contract as the Lessor's covenants?

[Moonfruit]

Payable on day of contract signing.

[luisparis]

thanks for the replies, I really didn't feel comfortable enough to give with this owner any money upfront and we signed for another apartment ready to move in. Not quite as stunning but a decent solution on a 6 months contract only, as I was both fed up with looking for a new apartment and staying in our former place.