How it works
The tenant pays a deposit at the start, which is returned at the end of the lease, plus a monthly rent. A larger deposit usually means lower rent, because the landlord can use or invest the deposit money during the lease.
The conversion convention
Landlords and agents usually convert between deposit and rent with a monthly rate. A common convention is 3% a month: each 1,000,000 Toman of deposit is treated as 30,000 Toman of monthly rent. The rate used in practice varies by city and over time, and is always agreed between the parties.
Worked example
A tenant can pay 100,000,000 Toman more deposit. At 3% a month, the rent drops by 100 × 30,000 = 3,000,000 Toman a month.
Which is better for the tenant?
Compare the conversion rate with what the money could earn elsewhere. If your savings would earn less than the conversion rate, a larger deposit and lower rent often costs you less. If you would pay interest to borrow the deposit, compare with the loan's interest instead.
Protect the deposit
- Use a written lease that states the deposit, the rent and the return date.
- Record the condition of the home at the start, with photos.
Tools for this
The conversion rate is a market convention, not a law. Agree it in writing and check your lease before paying.
Asaiejadoo — everyday calculation and AI guides, part of the ZIBADIS network founded by Masoud Moghaddam in Tehran.
