Some leases say that if the landlord uses some or all of the security deposit during the term of the lease, the tenant must pay to bring the deposit up to the lease-specified amount. The landlord must place the security deposit in an escrow account in a bank for the term of the lease-or may be bonded which is a guarantee of payment. The tenant does not receive any interest payments from the escrow deposit for the first or second year. On longer leases, interest must be paid after the second year. Payments of rent , also called consideration, are specified in the lease.
Some landlords allow a discount for timely payment.
Other landlords assess a penalty if the rent is late. In event of a law suit by the landlord, the landlord would request payment in full for the entire lease term which would be the larger amount. Utilities and appliances are also described in the lease and should be read carefully. Who pays which utilities should be specifically indicated. If the tenant is responsible for certain utilities, they must contract directly with the utility company.