Saturday, 6 October 2018

Security Deposit Tips

We all always talk about the rights of tenants but one should also think about how the land lord will protect his property and his rights as well. Security deposits are one of the main insurances for the land lord that his property enough protected while the tenants use it. Even though the security deposit does not provide enough protection but it is still a major part of the agreement. The security deposit only protects the property against minor tenant caused damages to the property.

Things Security Deposit Cannot Cover
Any major damage caused to the property cannot be covered by the security deposit. For example, it may cover the repair of one of the major electric appliance ruined by the tenants but what if almost all the appliances run out of function. Along with this the security deposit cannot cover the unpaid rent. It is not allowed in most of the states but even if the states allow only a few months’ rents can be covered by the security deposit. There is a fine line between normal “wear and tear” and tenant damage. Generally, it is the land lord who decides if it is a tenant caused damage or the part of the property was naturally damaged but in some cases the tenants might come with strong arguments and win.

Tenant Proof Your Property
It is better to tenant proof the property rather than regretting in the long run. One should adopt long lasting measures that do not need early replacement or repair. For example, the carpets should be replaced with bamboo or faux wood flooring while the walls are painted glossy that is easier to clean and the land lord do not have to paint the walls again and again.

Applicants Who Argue About Making Deposit
Most of the times the tenants would argue on depositing some of the security deposit and asking time for the rest of it. In the meantime, the leased is signed and they don’t care about the rest of the deposit. While selecting a tenant out of all the applicants one should go for stable renters, the ones who intend to pay the rent on time as well as the security deposit and don’t live hand to mouth.

Tenants Screening
No land lord wants his property damaged more than he can recover from the security deposit. To avoid such a situation, the landlord should inspect the short listed applicant`s current home. The situation of the tenant’s current home can help the land lord a lot in selecting an applicant as the tenant. It’s easy to figure out which of the applicant is clean and organised enough to be selected as tenant.

Set Some Rules
The land lord has the right to set some rules to classify the “normal wear and tear” and tenant caused damage. It should be made clear to the tenants about the penalty of causing damage to the property that is due to the misuse. If all of this is made clear In advance and such clauses are added in the lease the tenants will be vigilant enough to take care of the property.

Don’t Classify the Types of Deposit
If the types of deposit are classified, the tenants may come up with arguments that support that the deductions should not be made from certain deposits. It is recommended to charge only one security deposit and specify it in the lease that it can be used to cover any type of damage, clean-up and unpaid bills etc.

The landlord should inspect the property regularly so that he may find out any damage done to the property in time.

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