Are you planning on investing in rental properties in the Central Valley? If so, security deposits are one thing that you will be dealing with sooner rather than later.
In this article, we will cover 4 things that you need to know about security deposits just so you will avoid making common mistakes that other owners have made and save yourself the hassle that can come from this important part of owning investment properties.
#1 – Be Clear and Up Front About Your Security Deposit
When it comes to the security deposit, you should always be clear and upfront with your tenants about it and include an itemized breakdown of all the deposits including the pet deposit and the cleaning deposit.
#2 – Don’t Split Up the Security Deposit
Your security deposit should be paid up front before the tenant moves in, not afterward because if you bend your rules regarding the security deposit, your tenant may expect you to be willing to bend the rules regarding when they will be expected to pay their rent.
#3 – Keep the Security Deposit Money in A Separate Bank Account
One thing you never want to do is put your tenant’s security deposit money in your primary bank account. Doing this will eliminate any confusion regarding their security deposit money and make it easier for you to return their money when they move out.
#4 – Be Specific About Repairs
Last of all, if you have to use your tenant’s security deposit after they move out just make sure that you are specific about how the money was spent and what you used it for. Besides proper documentation, you should also save your receipts as well just so you can have a paper trail which clearly shows what the tenant’s security deposit money was spent on.
Contact RPM Central Valley
To learn more about security deposits, or to learn more about the property management services we can offer you, contact us today at (209) 572-2222 or click here to connect with us online.