So just had my first pushback on our latest requirement of 2x the rent as Security Deposit. We require 2x Rent at lease signing and 1st month's rent before occupancy. So far this year, no pushbacks, people pay it, everyone happy.

This woman had gone all the way through her application EXCEPT for background check (she's a retired disabled vet, she says) when I asked if she was prepared with the deposit. She asked if I would cut it in half, to one month's rent. No ma'am. Here's the link to my website where it is all spelled out...

She says never mind.

Oh well.

If I could get 2x here I certainly would. Unfortunately, all my competition seem to be half crazy and ask for 1/2 to 1x.

So I aim for as close to 1.5 as I can get and am happy when I get it.

But we do have an apt complex nearby that has a deposit range advertised as 1/2 to 3x, so that is promising.

Bill, I am less concerned about people not paying than about people leaving early. We seemed to have had a rash of lease-breaking last year: all people leaving the area. Even right now I'm dealing with two who said, "Oh by the way I'm not renewing!" Lease calls for 60 days notice, one gave me exactly 30 and other less than 30. I want more leverage over this type of situation.

Plus people are just more cooperative and more apt to do the right thing when you have more of their money in hand, and you control how much they get back.

99.9% of the time, it doesn't matter. I get great tenants who obey the rules, clean their place and turn it over to me spotless. It's that less than 1% that I want to prepare for.

I agree, Vee. I had proposed a promissory note for the next month but she said because she is only one person, no pets, and the VA paid her bills she didn't want to pay more than one month. Nope. I've been taking 1.5 months for years, just jumped to 2 months this year.