Security Deposit on Tenancy Renewal — Carry Over, Top Up, or Refund?
In Singapore, deposits are usually 1 month for a 1-year lease and 2 months for a 2-year lease. When you renew, the question is what happens to that money. Most of the time it just keeps sitting with the landlord, but there are three real scenarios — carryover, top-up, partial refund — and each one needs a single clause in the renewal to keep things clean.
For the wider renewal flow, see the tenancy renewal guide. For rent changes, see the rent increase page.
The default: deposit carries over
Standard practice is that the deposit already held by the landlord continues into the renewal term. There is no return-and-redeposit dance. The deposit is just re-tagged against the new tenancy in the agreement, and the same amount stays in the landlord's account.
This is the cleanest path for both sides. The tenant doesn't have to find another month or two of cash to redeposit. The landlord doesn't have to refund and then receive again. Both parties just need the renewal agreement to state the deposit amount being carried forward and reference the original tenancy.
What the agreement should say
One clause is enough: the deposit amount, the original tenancy date it was paid under, and a statement that it's now held as security for the renewal term. No separate transfer, no separate receipt needed for the carryover itself.
When you top up
If rent goes up at renewal and the original deposit was set as a number of months, market practice is to top up so the deposit still equals the same number of months at the new rate. The math is simple — multiply the new rent by the number of months and pay the difference.
Example 1 — 1-year renewal, $3,000 → $3,300
Original deposit: 1 month at $3,000 = $3,000 held.
New deposit at 1 month at $3,300 = $3,300.
Top-up: $300, paid by the tenant on or before the renewal start date.
Example 2 — 2-year renewal, $4,500 → $5,000
Original deposit: 2 months at $4,500 = $9,000 held.
New deposit at 2 months at $5,000 = $10,000.
Top-up: $1,000.
Example 3 — flat-amount deposit (no top-up)
If your original tenancy specified the deposit as a fixed dollar figure (e.g. "S$5,000") rather than "1 month rent", there's no automatic top-up. Some landlords still ask for one; the tenant can reasonably refuse since the contract sets a fixed sum. This is why landlords typically write deposits as "X months rent" in the original lease — it auto-scales on renewal.
When you refund partially
The clearest case for a partial refund is going from a 2-year original lease to a 1-year renewal. The convention is 2 months deposit on a 2-year lease and 1 month on a 1-year lease — so the landlord refunds one month when the term shortens.
Worked example
Rent $4,000/month. Original 2-year lease deposit: 2 months = $8,000 held by landlord.
Renewal: 1 year, deposit at 1 month = $4,000.
Landlord refunds $4,000 to tenant on or before the renewal start. Landlord keeps the other $4,000 as the new deposit.
Some parties prefer to keep the full 2 months deposit on the 1-year renewal as extra security — that's fine if both agree. Just write the chosen amount into the renewal agreement so there's no ambiguity later.
Documenting the carryover
The renewal agreement is the only document that needs to record the deposit position. Make sure it covers four things:
- Exact carryover amount. The dollar figure currently held, in writing.
- Reference to the original tenancy. Date of the original lease where the deposit was first paid.
- Top-up or refund details. If either applies: amount, date paid, transfer reference. If not, state explicitly that no adjustment is required.
- Fresh inventory / condition report. Walk through the unit at renewal, photograph any wear-and-tear, attach the list as an annex. This resets the baseline for the new term.
One more thing: there is no IRAS-side action specifically for the deposit. Stamp duty is calculated on the rent, not the deposit. The deposit is purely a private contractual matter between landlord and tenant.
Generate your renewal with the deposit clause built in
Pre-filled deposit carryover, top-up math, partial refund — all written into the renewal agreement. Free preview, $10 to download.
Frequently asked questions
Does the existing security deposit carry over to the renewal?
Usually yes. The standard practice in Singapore is that the deposit held by the landlord stays with the landlord through the renewal — there is no return-and-redeposit. The deposit just continues to secure the new term. Both parties save on bank transfers, and the tenant doesn't have to find another month or two of cash. The renewal agreement should still mention the carryover explicitly so there's no confusion about how much is held and against which tenancy.
Rent is going up. Do I need to top up the deposit?
Standard market practice is yes, top up to match the new rent, if the original deposit was set as a fixed number of months. Quick math: if the original deposit was 1 month at $3,000 = $3,000, and the new rent is $3,300, the top-up is $300 to bring the deposit to 1 month at the new rate. If the original deposit was 2 months at $4,500 = $9,000, and the new rent is $5,000, the top-up is $1,000 to make it 2 months at the new rate. The top-up is usually transferred on or before the renewal start date.
Can the tenant ask for a partial deposit refund at renewal?
They can ask, but it's rare unless there's a real reason — most often, going from a 2-year original lease (typically 2 months deposit) to a 1-year renewal (typically 1 month deposit). In that case the landlord refunds the extra month. Outside that scenario, deposit reductions on renewal aren't standard. The deposit is the landlord's protection against unpaid rent and damage, and most landlords won't reduce it without a reason.
My original lease was 2 years with 2 months deposit. Renewal is 1 year. What happens to the deposit?
Common outcome: the landlord refunds 1 month of deposit and keeps 1 month, since 1-year leases conventionally carry 1 month deposit. So if the rent is $4,000/month, the landlord returns $4,000 to the tenant and continues holding $4,000. Both parties sign off on the new amount in the renewal agreement. If both parties want to keep 2 months deposit on the 1-year renewal (extra security), that's also fine — write it in.
Does the landlord have to pay interest on the security deposit?
No. There is no legal obligation in Singapore for landlords to pay interest on tenancy deposits. The deposit sits with the landlord, typically in their own bank account, and any interest earned is the landlord's. This is different from some other jurisdictions (UK, parts of the US) where deposit-protection schemes apply. Singapore has no equivalent scheme — the deposit is a private contractual arrangement.
What if there is a deposit dispute at the end of the renewal term?
If the landlord withholds part of the deposit and the tenant disputes it, the route is the Small Claims Tribunal (SCT) for amounts up to $20,000 (or $30,000 if both parties agree in writing). Filing fee is small ($10–$30 depending on amount). No lawyers allowed at SCT — both parties represent themselves. Most deposit disputes settle there. Keep your inventory list, photos at handover, and receipts for any deductions — that's what the SCT will look at.
How should we document the deposit at renewal — handover-wise?
You don't physically hand anything over since the deposit is already with the landlord. What you do is: (1) state in the renewal agreement the exact deposit amount being carried forward, (2) reference the original tenancy date and amount, (3) record any top-up paid (date, amount, transfer reference), and (4) sign and date. If you also do a fresh inventory list / condition report at renewal, attach that too — it resets the baseline for the new term and avoids arguments about what was already worn at the start of the renewal.
What paperwork records the deposit carryover on renewal?
The renewal agreement itself. There should be a clause that reads something like: 'The Tenant has paid a security deposit of S$[amount] under the original Tenancy Agreement dated [date], which is hereby carried forward and held by the Landlord as security for this renewed Tenancy. The Tenant shall pay an additional top-up of S$[amount] on or before [date] to reflect the revised monthly rent.' That single clause covers it. No separate receipt is needed for the carryover — only for any top-up actually transferred.