I have a choice to make: We are renting a new place, and the landlords are giving me the choice between a full month's rent for a security deposit, or a third of that amount as a one-time fee.
I have the money for the full security deposit, but I'll probably come out ahead if I pay the one-time fee and invest the difference.
Should I pay $1000 to avoid giving a 1-year interest-free $3000 loan to my landlord?
In most jurisdictions security deposits are in escrow and the landlord cant earn personal interest on it
That's good to know. But if I can avoid locking up money for a year by paying a one time fee, I might do it. Their ask is legal here.
red flags going up on this one.
you certain the landlord owns the place/authorized?
I was shown the place by a realtor but I haven't met the homeowners. The realtor's explanation is that it gives an option for those who can't afford 2 months rent to secure the property and cover any potential wear-and-tear. Security deposits are pretty normal here, but many places do a move-in fee instead.
