The first question that needs to be addressed is what is a security deposit? A security deposit is an amount of money that a landlord charges on top of the monthly rent and is usually collected at the time the lease agreement is signed. This money is set aside for the duration of the tenant’s stay and may or may not be returned to the tenant upon termination of the lease. There are factors that are considered before the deposit is returned to the tenant.
One of the factors upon determining if the renter gets their deposit back is delinquency of rent. Most lease agreements require a thirty day notice before vacancy and if the last month’s rent is not paid, this money comes out of the deposit. Another factor whether or not the deposit is returned is that condition of the apartment when the tenant has completely vacated the premises. If the residence is a filthy mess, there are holes in the walls or other damages that are not part of regular wear and tear, then chances are a deposit won’t be returned. Excessive pet stains and cigarette burns are also included as damages.
A security deposit can be up to two months of the required rent, depending on the age of the tenant and the state laws. There are some things that are required by landlords when dealing with security deposits. One of them is that they can’t just take the deposit and spend it. It has to be held in a special account until the tenant vacates that residence. No matter what state the rental is located, the landlord needs to provide an itemized statement in writing, describing the condition of the apartment, what damages were incurred, and what was charged for cleaning or repairs. If this is not done within a certain amount of time, they forfeit any claims to the deposit and it must be returned to the tenant, no matter how much damage they have done to the unit.
For landlords, the best way to protect yourself from having out of pocket expenses when renting to tenants is to charge a security deposit, and make this clear in writing.
Take pictures of the rental each and every time you clean the place and after the tenant has moved out. If there are any kind of damages or the rental is left in a dirty condition, be sure that you get an itemized receipt for any kind of work done to return the unit to a condition where it can be rented again.
Make sure that you send this itemized list and receipts to the tenant within fifteen days of vacancy. While some states allow more time, the quicker it is done the less chance you will forget. Make sure that you make and keep copies of any and all correspondence with the tenant.
Renters should also take pictures of the rental before and after moving in, in order to determine if there were any damages before moving in. Always leave the rental as clean and orderly as you came into it, and any damage like pinholes from putting up posters etc., should be fixed upon moving out if you want your deposit back.
