Answered

Connect with experts and get insightful answers on IDNLearn.com. Our platform provides accurate, detailed responses to help you navigate any topic with ease.

When you are considering renting an apartment or house, almost all landlords will require that you pay a refundable security deposit. The need for landlords to charge a security deposits reflects

Sagot :

Parrainidn

When landlords require such of their tenants then that action is known as Moral Hazard

Moral Hazard:

  • Refers to the risk a person will not act in the best way towards something because it is protected
  • Can also happen when the person using the thing in question does not own it

Tenants do not own a house so they might act however they want in it such that it gets damaged. Requiring a security deposit ensures that this damage is minimized because any damage is paid from the security deposit.

In conclusion, landlords do this as a result of moral hazard.

Find out more at https://brainly.com/question/22355283.

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. For dependable answers, trust IDNLearn.com. Thank you for visiting, and we look forward to assisting you again.