To be an effective landlord or rental property owner, you need to understand security deposits and what you can use them for. At Crest Premier Properties, we take a security deposit from the tenant at contract time. The tenant should always pay the security deposit before moving in.
Protecting Your Property
The security deposit is exactly what it’s called – security. The money you collect is used to secure the property. After the tenant moves out, you can apply the security deposit as necessary. At no point during the tenancy should that deposit be used for rent.
Move in and Move Out Condition
To property charge a security deposit, you need to establish the condition of the property before the tenant moves in. The property manager or the property owner will take photographs, notes and even record a video of the property before it’s turned over to the tenant. After the tenant does move in, we encourage that tenant to take photographs and make notes. We usually give them a move-in inspection document that we expect them to complete and return to us within seven days of moving in.
When it’s time for a tenant to move out, we can compare notes. The tenant’s records and the property manager’s records are reviewed and we then deduct money from the security deposit to pay for any damages that go beyond reasonable wear and tear. This might include broken windows or holes or broken appliances.
Charging the Deposit
You should only charge the security deposit after a tenant has moved out of the home and all the personal possessions have also been removed. Then, you can look at the condition of the property and the security deposit and determine what needs to be repaired.
If you have any questions about security deposits, please contact us at Crest Premier Properties.