What to know when renting housing with a poor credit history

The purpose of the security deposit is to protect the homeowner from any actual losses. However, disputes often arise when tenants vacate the property and discover that funds from their deposit have been deducted under the pretext of painting, cleaning, or minor repairs.

Landlords have the right to compensate for damage caused by tenants, but they cannot arbitrarily deduct funds under the guise of normal wear and tear.

The fairness of deductions largely depends on the terms of the lease agreement and the provisions of the Transfer of Property Act, 1882.

Section 108(m) of the Transfer of Property Act, 1882, obligates tenants to maintain the property in good condition throughout the tenancy and return it in approximately the same condition at the end of the lease. Nevertheless, this obligation does not extend to natural wear and tear that occurs over time.

Tenants are expected to take proper care of the property, but they are not responsible for damage or deterioration caused by ordinary use.

The natural aging of property over time is generally considered the responsibility of the homeowner, and deductions should not be made from the security deposit for this reason. Examples include...

If a tenant causes damage exceeding ordinary use, the landlord may have a valid reason to withhold part of the security deposit.

The lease agreement is the primary document determining deductions from the security deposit. Provisions regarding repainting, cleaning, repair, and maintenance must be clearly stipulated before the lease begins.

Both parties should document the condition of the property with photos or videos upon move-in and move-out. If a dispute arises later regarding the property's condition, this evidence can be very useful.

Legal experts advise both parties to jointly inspect the property before transferring possession and record existing defects at the start of the lease. At the end of the lease, if the landlord intends to make any deductions,...

For tenants, carefully studying the lease agreement, taking care of the property, and keeping records of its condition can significantly reduce the likelihood of disputes.