The tenant
and the landlord will negotiate this up-front. The amount of deposit due will be
written in the lease agreement.
The landlord is entitled to negotiate whatever deposit he / she
deems fit. It is common for the landlord to require one months rent or even a
double deposit (2 months rent). The landlord could even require a triple deposit
if the tenant's credit report is considered risky.
However once the amount of the deposit has been agreed, the
landlord cannot demand a bigger deposit during the term of the lease – unless
the tenant agrees or unless the lease agreement makes provision for a topup
when the rent increases.
Practically the landlord should not hand over the keys to the
property until the agreed deposit and first months’ rent has been paid (and
cleared in the case of a cheque).
Clause 1.9 of the TPN Lease Agreement offers an option to create a
suspensive condition that if the tenant does not pay the deposit, the lease
agreement is invalid.