Home Renovation Security Deposit: How It’s Calculated, Refunded, and When Funds Are Deducted
Renovating your home is a significant undertaking. Before breaking ground, beyond finalizing design and construction costs, another crucial aspect to address is the ‘renovation security deposit.’ This fee is collected by property management (such as condominium associations or community committees) to safeguard common facilities and neighborly rights during your renovation project. However, many homeowners remain unclear about its calculation, refund conditions, and potential deduction scenarios, often leading to disputes during the reimbursement process.What is a Renovation Security Deposit and Why is it Required?Often referred to as a ‘cleaning deposit’ or ‘construction deposit,’ the renovation security deposit primarily serves to ensure the integrity of common areas and equipment throughout the renovation period. This sum is typically paid when applying for the…