Last month's rent collected at signing
Collecting first + last + deposit is standard in many markets. Just make sure the total doesn't exceed state deposit caps.
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What it actually means
Last month's rent isn't technically a deposit — it's prepaid rent. But some states include it in deposit caps anyway.
This protects the landlord if you skip out on the last month. It's normal practice.
What it looks like in a lease
"Tenant shall pay first month's rent, last month's rent, and Security Deposit at Lease execution."
What to watch for
- Whether it counts toward deposit cap
- Whether it earns interest
How to negotiate it
Ask to defer last month's rent if cash flow is tight. Some landlords agree.
When it crosses into a red flag
- Total exceeds state cap when last month is included
Frequently asked questions
Can I use last month's rent as my deposit?
No — they're separate. Last month pays rent; deposit covers damages.
Want to know how this works in your specific state? Read the Security deposit laws guide, or pick your state from the guide index.
Related clauses
General information, not legal advice. Clauses are interpreted differently across states and courts. For a binding interpretation of your specific lease, consult a licensed attorney in your state.
