More than 44 million households in the US are occupied by renters, and in most cases, these renters will have put down a security deposit.
Security deposits are a standard part of a tenancy agreement. They serve as a protective measure for landlords and tenants, helping remove a degree of risk. As such, it's important for both parties to understand security deposits and what they cover.
Let's take a close look at security deposits and cover some key points that both renters and landlords in Springfield should know.
Landlords
A landlord should always make security deposits a part of their rental agreements. Not doing so could lead to serious financial loss.
Determining the Amount
It's important to set a reasonable amount for the security deposit. One that's too low will put a landlord at risk, and one that's too high will put potential renters off. Many landlords opt for the equivalent of one or two months' rent, but it can be worth researching the market in your area to see what others are doing.
Confirming Property Condition
The security deposit may be used to cover damage caused by a tenant. It's vital to document the property's condition at the start of their tenancy, ideally with pictures and videos. You can then assess any damage when your tenant leaves.
Storing the Deposit
You shouldn't store a security deposit with other funds. Instead, you can open a special deposit account to hold it until the tenancy ends (unless they renew their lease).
Renters
People often think tenants only need to worry about paying their deposit and getting it back. There are, however, certain other considerations renters need to make.
The Importance of Paperwork
Before settling into your new home, document everything. Take note of any existing damage so you can't be blamed for it later. Photo and video evidence is vital here, and this should all be in a written acknowledgment that your landlord signs.
Mind the Modifications
Make sure you get written consent if you want to make any modifications. Discuss everything with your landlord to make sure they understand the changes and are happy with them.
Keep It Clean
Take care of the property. Routine cleaning and maintenance are vital if you want to get your full deposit back when you leave.
Your Outdoor Space
If you have an outdoor space, make sure you know what's expected of you in terms of gardening. Again, if you want to make any changes here, make sure your landlord has agreed to them.
Regular Check-Ins
Maintain an open line of communication with your landlord. Document important discussions in case you need to refer back to them later on.
Know Your Rights
Make sure you understand the tenant rights in your area. It's also important to know if your deposit earns interest as you should receive this when it's returned to you.
The Importance of Security Deposits
Security deposits are incredibly important in any rental agreement. Make sure they're defined clearly in your lease contracts to prevent any issues.
A reliable rental property management company like Hunter Property Management can help ensure agreements and deposits are handled correctly. We've been serving clients in Springfield for more than three decades and currently manage over 600 units.
Contact us today to find out more about our service.
