Damage Deposit Highlights
How does damage deposit refund work in the Peruvian Market? Very important issue!
Lets talk about how it works. We will use urbania.pe's information because it the most used by Peruvians (at least in Lima), but feel free to look into any other sources that you can find, or if you have Peruvian friends, please ask them where you can find other ways to look for places :)
Damage deposit requirement
General Market: 1 or 2 months of the monthly rate.
APU PERU: One monthly rate.
Damage deposit usage in Peru
IMPORTANT! This is how it works in Peru, not in APU.
The usage of the damage deposit in Peru is to guarantee the owner that he will receive back the property in the same conditions than the tenant received it at the begining of the contract.
Mostly, it is require 2 months as damage deposit because on this way the owner will assure that there is enough money to demand the "lucro cesante" (loss of profits) penalty, in case the tenant leave the property before the contract final date.
Damage deposit will assure the owner that the tenant will pay for any damage that intensionally or not could cause to the property.
Damage deposit is never used as part of the last payment in Peru.
Painting conditions: Take in consideration that the majority of owners will even demand you to give back the property with the same painting conditions as you got it. It means that even a small stain on the walls could be enough for the owner to require that you paint the wall. That depend on the owners, but in general, they do not want to paint just over the stain because there will be a difference of colors, even if they use the same.
We suggest to take care about this, and avoid to stick photos con the walls. If you can clean up before you give back the property could be better. Try to take pictures of the place before you move in, so that you can show how it was before.
Damage deposit refund
There are to options that are used in Peru:
1. Owner will pay for the works, and after the works are finished, it there is an outstanding balance the owner will refund you the difference. It could take even until 1 month!
2. Owner will value the damage, and he will discount it and refund you the damage deposit as soon as you give back the keys and you leave the property.
If after review the property there is any damage, the owner should give you back your money.
Damage deposit in APU
The damage deposit in APU has the same purposes that we show above: Assure the lucro cesante, that the tenant won't damage the property, and so on. But we intermediate between you and the owner, so that the owner can be more flexible than normal. But, if there are any damage in painting walls, we will help you to resolve the problem before any discount will be make.
We also assure you that you will have your damage deposit the same day that you leave the room.
Please, if you have any friend that lived in Lima, Peruvian or not, ask him/her information about how it works in Peru. Anybody can give you an opinion about, but try to ask to somebody that has already rented a place in Lima, so that you can compare our information with his/her one.
As much this person know about the Real State Market information, more exactly will be the idea that you will have about how does it work.