Security Deposits – What Are The Most Important Things That Landlords Need To Know?

Are you just getting started with owning your first rental property? If so, understanding security deposits is important because this is what’s going to avoid conflict with your tenant over the return of their security deposit.

Thankfully, understanding security deposits is easy, especially when you follow this simple checklist.

Security Deposit 101 – Everything That Landlords Need To Know

Security Deposit Limits

Depending on the location of your property, you may be able up to charge up to two month’s rent for unfurnished properties, and three month’s rent for furnished properties.

To be certain what the security deposit limits are for your state, take the time to Google your city name followed by ‘security deposit limits’.

Allowable Uses Of Security Deposits

Once you have the security deposit in hand, it’s best to thoroughly research how you can use it.

Some of the most allowable uses of security deposits include fixing holes in walls, broken windows, burns or stains on carpets, and fixing doors that were broken through negligence.

Security Deposit Return

Last of all, it’s important for you to know when you have to legally return the security deposit to your tenant.

In some states, landlords have 15 days, while in other states landlords have 30 days.

Research this before renting your property and make sure that if you have to use the security deposit, you should include an itemized report for what it was used for so that there’s no conflict about the security deposit after your tenant moves out.

Contact Deposit Defender

At Deposit Defender, we help tenants get back more of their security deposit with our simple and easy to use app that makes it possible for renters to record the condition of their rental property before they move in.

Once renters create a Deposit Defender account, they can take photos of a property’s pre-existing conditions, document the condition of the property with our convenient checklists, and more.

To get started with Deposit Defender, click here to download it today.