A security deposit is money the owner holds as a guarantee while you live there; if it is refundable, it should come back when you leave, minus only agreed deductions such as damage or unpaid bills. Advance rent is rent paid early for months you will live there, so it is used up, not returned. Many deposit arguments start because the two were never clearly separated in writing, so agree both amounts, and what happens to each, before you pay.
Security deposit vs advance rent: the difference
| Security deposit | Advance rent | |
|---|---|---|
| What it is | A guarantee the owner holds | Rent for future months, paid early |
| Do you get it back? | Yes, if refundable, minus agreed deductions | No, it pays for the months it covers |
| What it can cover | Damage beyond normal wear, unpaid rent or bills, as agreed | Only the months it covers |
| What to write down | Amount, refundable or not, allowed deductions, return date | Amount and exactly which months it covers |
| If you leave early | Depends on your notice terms | Ask whether unused months are returned |
If an owner asks for a one-time amount that is neither, ask exactly what it is for and whether it comes back.
Refundable or non-refundable: ask before you pay
Not every amount called a "deposit" is refundable. Some hostels charge a non-refundable admission fee, and some owners keep part of the deposit for painting or cleaning. A non-refundable amount is a fee, not a deposit, so count it as a cost in your accommodation budget.
Before you pay, ask the owner for the rent, the deposit and whether the deposit is refundable. Ask these questions by WhatsApp, SMS or email so the answers are in writing:
- How much of the deposit comes back, and how many days after I move out?
- What exactly can be deducted: damage, unpaid bills, cleaning, painting?
- What happens if I leave before the agreed period?
- Will part of it be held until the final electricity and gas bills arrive?
What to get in writing
Your agreement, or a hostel's written terms, should state:
- [ ] Names of the owner and tenant with CNIC numbers, and the address and room
- [ ] Monthly rent, the due date and how it is paid
- [ ] Security deposit amount, and whether it is refundable
- [ ] Advance rent amount and the exact months it covers
- [ ] What the deposit can be used for, and when it will be returned
- [ ] Notice period for both sides
- [ ] Who pays which utility bills
- [ ] An inventory and condition list confirmed by both sides
In Punjab, the Punjab Rented Premises Act 2009 lists the amount of advance rent and security among the things a tenancy agreement should contain, and says the landlord should give the tenant a certified copy of the agreement. Our guide to rental agreements in Pakistan covers the rest of the agreement.
Pay in a way that leaves a record
- Prefer bank transfer, JazzCash or Easypaisa over cash. Save the transaction ID and a screenshot, and write the purpose in the note, for example "Security deposit, Room 4".
- If you must pay cash, get a signed receipt with the date, amount, purpose and the owner's name.
- Pay the deposit and the rent as separate transactions, so it is clear which is which.
The law supports this. Islamabad's Rent Restriction Ordinance says payments between landlord and tenant are to be made by crossed cheque or with a proper receipt or acknowledgment, and Sindh's Rented Premises Ordinance says the landlord shall acknowledge receipt of rent in writing.
Pay rent, deposits and advance directly to the owner, and never share card or banking credentials with anyone. Pay only a small token to hold the room, and only after you have seen it (or had a live video call) and have the terms in writing. Keep a photo of every receipt. A receipt is a record, not a guarantee of a refund; refunds are settled between you and the owner. Our student accommodation safety guide explains how to pay safely.
Photos at move-in and move-out
Dated photos are your strongest evidence:
- Move-in day: take a slow video of the whole room, then photos of the walls, floor, washroom fittings, doors, locks, furniture, mattress, AC and fan. List any existing damage, note the meter readings, and send it all to the owner in chat the same day.
- Move-out day: clean the room, take the same photos from the same angles, note the final meter readings, and get a written acknowledgment that you returned the keys.
Our moving into a hostel checklist includes a full move-in inventory.
Damage vs normal wear and tear
A fair owner deducts for damage, not for a room that looks lived in.
| Normal wear | Damage or unpaid amounts |
|---|---|
| Faded or lightly marked paint | Holes from nails or screws put up without permission |
| Small scuffs on the floor | Broken furniture, cracked tiles, burns |
| A mattress flattened by use | Stains, broken locks, lost keys |
| Fittings worn out by age | Unpaid rent or utility bills |
For flats and houses in Punjab, the Act says the tenant should keep the premises in the condition in which they were let, except for normal wear and tear, subject to the tenancy agreement. If the owner makes deductions, ask for an itemised list with photos or repair receipts, not one round figure.
Notice period and moving out
Your agreement should state the notice period, for example one month. Give notice in writing, by WhatsApp, SMS, email or letter, with your leaving date, and use the date calculator to count the days. Don't skip the last month's rent and tell the owner to "adjust it from the deposit" unless they agree in writing; the deposit then can't cover the final bills, and both sides end up arguing over the same money.
How to ask for your deposit back
- A week before leaving, agree a time for a joint inspection.
- Inspect together, compare with the move-in photos, and agree any deductions on the spot.
- Settle the final bills. If the last electricity or gas bill hasn't arrived, agree in writing how much is held back and when the rest is returned.
- Send a written request with the amount, your account details and the agreed date.
- Follow up politely in the same chat, so the whole history stays in one place.
A short message is enough:
If the owner won't return your deposit
- Talk first, calmly, with your photos, receipts and chat history. A neutral person such as the hostel warden or a family elder can help.
- Send a final written request with a clear deadline, listing what was agreed and what you paid.
- Report a misleading listing to the website or group where you found it, with your screenshots. That warns other students, but it won't get your money back, so carry on with the next step.
- Use the official route for your area. Each province has its own rent law: - Punjab: the Rent Tribunal under the Punjab Rented Premises Act 2009. Its final orders can include adjustment of advance rent and security. - Sindh (urban areas): the Rent Controller under the Sindh Rented Premises Ordinance 1979. - Islamabad: the Rent Controller under the Islamabad Rent Restriction Ordinance 2001, who first refers disputes to a Mediation Council. - Khyber Pakhtunkhwa, Balochistan and elsewhere: ask a local lawyer or the district court which forum handles rent cases.
One important limit: the Punjab Act's definition of a building does not include a room in a hostel or boarding house, and Islamabad's Ordinance leaves hostels out of its definition of a residential building. If you rented a hostel bed rather than a flat, portion or room in a house, ask a lawyer which forum applies.
This guide is general information, not legal advice. Check the current rules for your province, and speak to a lawyer if you are in a dispute.
Frequently asked questions
Is a security deposit refundable in Pakistan?
It depends on what you agreed. A security deposit is meant to be returned when you leave, minus agreed deductions, but some owners make part of it non-refundable. Get the refund terms in writing before you pay, in the agreement or a message from the owner.
What is the difference between advance rent and a security deposit?
Advance rent is rent paid early for specific months and is used up as you live there. A security deposit is a guarantee the owner holds and returns when you leave, minus agreed deductions for damage or unpaid bills.
Can the landlord keep my deposit for painting?
It depends on your agreement. Faded paint from normal living is wear and tear, while holes, stains or marks you caused are damage. Agree before you move in whether a painting charge applies, and ask for an itemised list of any deductions.
Where can a tenant complain about a deposit in Punjab?
Rent cases under the Punjab Rented Premises Act 2009 are filed in the Rent Tribunal of the area or district. The Act's definition of a building excludes hostel rooms, so if you rented a hostel bed, ask a lawyer which forum applies.
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