Do You Pay Security Deposit Before Signing a Lease?

Usually no. Most tenants pay the security deposit at the time of signing the lease, not before.

That small timing difference matters more than it sounds.

What a security deposit really means

A security deposit is money kept by the landlord as protection.

It covers unpaid rent or damage beyond normal use. Nothing fancy. Just safety money.

And because it’s protection, landlords usually collect it only after both sides agree to the lease terms.

That’s the key part.

When is the deposit normally paid?

In most rental situations, the flow looks like this:

• Visit the house and agree on rent
• Read and confirm the lease terms
• Sign the lease
• Pay the security deposit and first month’s rent
• Collect the keys

Simple. Clean. Safe.

Paying before signing is not the default. It happens sometimes, but it shouldn’t feel rushed or unclear.

Is it ever okay to pay before signing?

Sometimes landlords ask for a token amount or holding fee to reserve the house. That is not the same as a full security deposit.

Before paying anything early, check this:

• Is it clearly written in the lease or email?
• Is it refundable if the deal falls through?
• Is there a receipt or proof of payment?

If answers feel vague, pause. No harm in waiting.

How much is the security deposit usually?

This depends on location and local practice.

In many Indian cities, security deposits range between:

• 2 months’ rent
• 3 months’ rent
• Sometimes higher in metro cities

There’s no single rule. But the timing stays similar. Deposit is paid with or right after signing.

Red flags to watch for

Quick tip. Be cautious if:

• Deposit is demanded before showing the lease
• Payment is asked only in cash with no receipt
• Pressure tactics are used like “someone else will take it”
• Details keep changing after payment discussion

Good rentals don’t need panic.

What to check before paying the deposit

Before transferring money, always confirm:

• Final rent amount
• Deposit amount and refund conditions
• Notice period
• Deductions allowed at move-out

Once these are clear, paying the deposit makes sense.

In short

Security deposit is usually paid at lease signing, not before.

Reading the lease first protects money.

Rushing often causes regret.

Still unsure about deposit rules in a specific city or situation?