💰 Security Deposits, Escalation Clauses & Renewals Explained
Last Update 7 months ago
Security Deposit:
Usually equal to 3–6 months’ rent; refundable upon vacating if there’s no damage or unpaid dues.
Escalation Clause:
A standard clause in long-term leases allowing periodic rent increases, typically:
- 5%–10% annually, or
- 15%–20% after every 3 years
Renewal Terms:
- Must be stated clearly in the contract
- Can be automatic or require mutual consent
- New lease registration may be required if significant changes occur
Tip: Document any changes or extensions in writing, signed by both parties.