One of the most common topics that owners ask about is security deposits. If you’re managing a rental property, it is essential to know how much can be charged, what security deposits can be used for, and when they need to be returned. Here is an overview on security deposits. For specific questions, feel free to email us at concierge@caronb.com
How Much Can Be Charged?
You can charge one month’s rent maximum for the security deposit. If the tenants have a pet, you can charge up to another month for the pet. This does not apply to service or support animals.
How Much Time Is There to Return a Tenant’s Security Deposit?
You have up to two weeks to return the security deposit. Consider that the tenant may need it for their next place, so be considerate of their schedule.
You can return it on the same day, but you will want to be able to do a final inspection walkthrough of the property to determine the amount of the security deposit that will be returned.
You’ll want to do the walkthrough without the tenants present. This gives you time to go over the property condition form, make sure that everything is done, and everything is clean. Open the oven and the refrigerator; account for all inventory and review any repairs made.
What Can the Security Deposit Be Used For?
The security deposit can be used for repairs to damages caused by the tenant. It can be used for cleaning. The tenant is required to leave the rental property clean. You can learn about properly cleaning in our blog here.
If tenant doesn’t return all the keys, including the mailbox key, deadbolt, doorknob, fobs, etc, the key replacement comes out of the security deposit. It can also be applied to re-keying.
It is important for the landlord or property manager and the tenant to know that the rental agreement extends past the moveout date until the completion of the final inspection. This means that the time it the time it takes to get the repairs done can be considered pro rata days rented. This also applies to cleaning and utilities and can be charged to the security deposit.
Most boards of realtors have vacating instructions with definitions of how and what to clean, when to move, and information about paying utilities until the final inspection. This should be given to tenants at move-in, so they are prepared to properly vacate.
The security deposit cannot be used as last month’s rent.
To learn more about our concierge rental services and discuss any needs for your rental property, call our office to schedule a private consultation at (808) 593-9826 or email concierge@caronb.com
