Types of Deposit in Tenancy

Earnest/Booking Deposit

  • Paid to reserve the property before signing the agreement.
  • Usually 1%–3% of the purchase price (for sale) or 1 month’s rent (for rental).
  • Deducted from the total deposit upon agreement signing.

Security Deposit

  • Held by landlord as security against damages or breach of contract.
  • Usually 2 months’ rent (for rental properties).
  • Refundable at end of tenancy if no damages or outstanding bills.

Utility Deposit

  • To cover unpaid utility bills (water, electricity, etc.).
  • Usually 0.5–1 month’s rent.
  • Refundable if all utility bills are settled at end of tenancy.

Advance Rental

  • Paid upfront for the first month of tenancy.
  • Typically 1 month’s rent.
  • Not refundable (used as first month’s rent).

Access Card and Key Deposit (if applicable)

  • Small deposit (often RM50–RM100) for lost/unreturned access cards or keys.
  • Refundable upon return of all keys/cards at end of tenancy.

These deposits play a crucial role in protecting both landlords and tenants during the rental process. Always ensure the terms and refund conditions are clearly stated in the tenancy agreement. Receipts should be issued for all payments.

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