If you just purchased a home, condo or townhome and plan on listing it for rent in Lathrop one big part of part of your portfolio of rental properties is professionally managing your tenant’s security deposit.
In this article we will break down exactly what a security deposit is, how much you should charge and most important of all, how you should manage that money.
What Is A Security Deposit?
A security deposit is money that you (landlord) will take from a tenants in advance of their payment of rent.
With a security deposit you will have financial protection should your tenant break their lease, damage their property or violate their lease before moving out.
How Much Should You Charge?
As a California property owner you should charge the security deposit or one month’s rent; this means that the total payment you will receive from your future tenant should equal about two months-worth of rent.
Before deciding on the amount of the security deposit you will charge it’s best to research what other property owners may be charging locally just so you will not charge more for the security deposit than your competition.
Agree With Your Tenant on the Condition of the Property BEFORE Move In
One of the biggest problems you will face as a property owner is that there may be some tenants who will want to break their lease and demand that their security deposit be returned due to the condition of the property.
This problem can be resolved BEFORE your tenant moves in simply by documenting the condition of the property with pictures and making sure that both you and your tenant agree on the overall condition of the property at move in.
What to Do With the Security Deposit
After you’ve received the security deposit you should place the money into an escrow or trust account where it won’t be touched and can be returned after your tenant has moved out and their property is inspected to your satisfaction.
For Rent in Lathrop
Before listing your property for rent in Lathrop do this: contact RPM Central Valley today to learn more about our property management services by calling us at (800) 535-7381.