A security deposit tends to be a sum of money that is held in trust either like an initial part-payment within a purchasing process. It is usually used to stop the seller from going and selling the item to someone else whilst the agreed time period is present whilst the buyer decides if the item is suitable or arranges any finances. If you are a landlord, you will ask the person renting your place to pay a security deposit.
What is a Security Deposit Form?
The security deposit form tends to be a legal document that is given by the landlord at the time that the security deposit is collected particularly from the tenant on the rental property. It can be a form for something being brought as well, as explained above.
What to Include in a Security Deposit Form?
If you need to make a security deposit form, you can consider the tips below:
- MS Word– You can type this form in Microsoft Word.
- Date– It is important to include the date so that if one needs to refer to the form, later on, they can do so easily.
- Form number– A form number can also be included.
- Name of the owner– The owner or lessor’s name should be stated. It should be done clearly and at the top of the form.
- Name of the lessee– This is also necessary. After the owner’s name, you can add a place for the name of the lessee. These details are important because if the form needs to be consulted, later on, all details are clearly presented.
- Address of the property or details of the item bought- This needs to be given so that it is known what the security money is actually for.
- How much money was deposited- This is vital and is the main purpose of the form. The amount in words can be given as well.
- Received from and who it was received by– An area needs to be present where the names of these people can be given.
- How the money was paid– This can be by cash, check, money order, etc.
- Name of the financial institution where the funds will get held– It is important to write the name and its address clearly.
- Description– This will include a description of what the security deposit is for. Over here, everything necessary will be added.
- Signatures– It is important to have the signature of the landlord and of the person paying the deposit.
Advantages of Security Deposit Forms:
A security deposit form has the following advantages:
- It is proof of the security deposit that has been submitted.
- If anything goes against the rules stated and the security deposit is not paid, this form can be consulted.
Security deposit forms can be needed for different things where money has been deposited as security for something. These forms should be made clear, including all details in case some issue arises, and the form needs to be consulted.
