Bonds can be paid while they are being held, but the rate of rent increases may exceed this interest. The tenant should then add more money to the deposit that will be held. Click on a link below to learn more about renting and depositing for landlords or tenants. For example, if a tenant breaks a window or causes permanent damage to the property`s floors, walls, or infrastructure, the landlord can use the deposit for repairs. As a general rule, if the property is in good condition and no repair is necessary, if the tenant moves, the deposit can be refunded. Sureties are not considered taxable income and local laws often treat sureties as trust funds. Deposits used as final rent payments must be claimed as early rent and are taxable in case of payment. An explanation of the main differences between a deposit and last month`s rent…