The security deposit to be paid by a tenant is usually associated with a particular contract and can be paid by the tenant or by a third party (as a guarantee, for example). In flexible Real Estate Management, you create a security deposit agreement as a separate contract that refers to the contract covered by the security deposit.

The security deposit itself can be agreed upon in different forms (agreed security deposit) and can be due on various dates (agreed installments). Besides contractually fixed security deposits, the agreed security deposit can also be calculated based on the contract conditions (such as the rent). In Germany, for example, the security deposit for residential lease-outs is not allowed to exceed three times the monthly rent exclusive of heating expenses. The landlord and tenant can agree that the security deposit also has to be adjusted when conditions are changed (such as when rent is increased).

The security deposit data to be managed includes not only the agreed security deposit but also the actual data, that is, when and in what form (cash, guarantee, savings account, and so on) what amount of security deposit was actually paid by the tenant (actual security deposit). The security deposit master data is therefore broken down into basic data, partner data, agreed security deposit data, and actual security deposit data.