Collecting a Security Deposit
One of the most fundamental yet often overlooked principal of renting a property is to collect a security deposit. A security deposit protects you as a landlord from damages to your property caused by your tenants. It also helps you fund any unpaid bills that may be charged to you after a tenant moves out such as a water bill, utilities or even unpaid rent. Savvy renters may try to get away without paying the last months rent. It will likely take you 30 days to have them evicted, so holding at least one month’s rent will protect you in case the last month’s rent never comes.
Many states let you hold up to one and one half month’s rent for a security deposit. It is wise to collect the whole amount and return any unused portion to the tenant.
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