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rental deposit

Also called: uang jaminan sewa

Security money paid by the tenant upfront, returned if there is no damage.

What it means

A rental deposit or rental security money is a sum of money paid by the tenant upfront and held by the owner as security. These funds can be used to cover damage or arrears when the lease ends. The remainder should be returned according to the agreement.

Why it matters for families

A deposit ties up family money that cannot be used for other needs during the rental period. If the return conditions are not written down, a family can lose the deposit due to unclear damage claims. This is often overlooked in initial cash flow planning.

Example

For example, rent is Rp3 million per month and the deposit is agreed at one month's rent, namely Rp3 million. The family needs to prepare that money outside the first month's rent and moving costs.

Common misunderstanding

Many tenants think the deposit automatically becomes the last month's rent. The correction: check the agreement, because using the deposit usually must be agreed in writing.

Next step

This term makes more sense once you see the numbers for yourself.

Emergency fund →

Related terms

  • rentPaying to use someone else's house for a certain period.
  • household spending moneyA routine budget for daily household needs such as food, transport, and cleaning.
  • collateralAn asset pledged to the bank, in a mortgage usually the house itself.
  • AJBOfficial deed of sale and purchase of land and houses made by PPAT as proof of transfer of rights.

Definitions in this glossary are educational. For documents that are legally or financially binding, confirm with the party that issued them.

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The calculators and guides here are educational and are not personal financial or legal advice.