💰 Security Deposits, Escalation Clauses & Renewals Explained

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.