no collect sec deposit
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no collect sec deposit (by Arron K [MA]) May 4, 2024 10:02 AM
       no collect sec deposit (by 6x6 [TN]) May 4, 2024 10:11 AM
       no collect sec deposit (by Jason [VA]) May 4, 2024 10:16 AM
       no collect sec deposit (by WMH [NC]) May 4, 2024 10:36 AM
       no collect sec deposit (by NE [PA]) May 4, 2024 10:50 AM
       no collect sec deposit (by Arron K [MA]) May 4, 2024 11:17 AM
       no collect sec deposit (by NE [PA]) May 4, 2024 11:22 AM
       no collect sec deposit (by Arron K [MA]) May 4, 2024 11:40 AM
       no collect sec deposit (by NE [PA]) May 4, 2024 11:48 AM
       no collect sec deposit (by MikeA [TX]) May 4, 2024 12:00 PM
       no collect sec deposit (by zero [IN]) May 4, 2024 1:31 PM
       no collect sec deposit (by Jim [CA]) May 4, 2024 1:43 PM
       no collect sec deposit (by 6x6 [TN]) May 4, 2024 3:15 PM
       no collect sec deposit (by 6x6 [TN]) May 4, 2024 3:19 PM
       no collect sec deposit (by plenty [MO]) May 4, 2024 3:23 PM
       no collect sec deposit (by 6x6 [TN]) May 4, 2024 3:31 PM
       no collect sec deposit (by Small potatoes [NY]) May 4, 2024 7:44 PM
       no collect sec deposit (by plenty [MO]) May 4, 2024 9:21 PM
       no collect sec deposit (by Steve [MA]) May 4, 2024 11:37 PM
       no collect sec deposit (by zero [IN]) May 5, 2024 7:54 AM
       no collect sec deposit (by ken [NY]) May 5, 2024 12:24 PM
       no collect sec deposit (by Steve [MA]) May 5, 2024 12:30 PM
       no collect sec deposit (by zero [IN]) May 5, 2024 1:38 PM
       no collect sec deposit (by 6x6 [TN]) May 5, 2024 3:40 PM
       no collect sec deposit (by Ray-N-Pa [PA]) May 5, 2024 8:27 PM
       no collect sec deposit (by Steve [MA]) May 5, 2024 10:23 PM
       no collect sec deposit (by zero [IN]) May 6, 2024 9:04 AM
       no collect sec deposit (by RentsDue [MA]) May 7, 2024 7:48 PM
       no collect sec deposit (by Ken d [NY]) May 9, 2024 7:41 AM

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no collect sec deposit (by Arron K [MA]) Posted on: May 4, 2024 10:02 AM
Message:

This may be a different consideration but

In my med sized city we have a group of lawyers that have invested in rental RE for decades and I found out they no longer collect so called security deposits,.in this state there are a lot of tenant favored laws about timing, reports proving damages and other things. I suppose since they are lawyers they can go after post move out damages and a letter from your LL attorney probably would scare a former tenant but I'm thinking of doing the same. A with all the hassles at least in the two states I do business in (NY and Ma) any thoughts ? --73.126.xx.xxx




no collect sec deposit (by 6x6 [TN]) Posted on: May 4, 2024 10:11 AM
Message:

What are they doing instead and what are they calling it?

If I am not mistaken, I think this is what Brad20000's Rent-Lock Fee is? --76.129.xxx.xx




no collect sec deposit (by Jason [VA]) Posted on: May 4, 2024 10:16 AM
Message:

6x, donít encourage that nonsense. Security deposits are there for a reason, but if youíre comfortable taking the risk then take it. But I donít see the advantage. --172.56.xxx.xxx




no collect sec deposit (by WMH [NC]) Posted on: May 4, 2024 10:36 AM
Message:

No opinion on state laws I know nothing about. Me, I will continue to collect and hold 2x the rent for my tenants (and me) and continue to return them most of the time. --173.28.xx.xxx




no collect sec deposit (by NE [PA]) Posted on: May 4, 2024 10:50 AM
Message:

I collect deposits, because itís leverage at move out. Theyíre not going to be too motivated to clean the place as best as they can when you send them their list of move out charges and thank them for the rent lock fee they paid to you three years ago. But when I send them, a follow up to their move out notice that states thank you for being such a great tenant, we know you are going to leave the unit in great condition when you move out. We expect you, like most of our tenants, to receive all of your security deposit back. Here is a copy of the moveout charges that you signed When you first moved in.

Itís all just a game, but i donít know why people would ditch the deposit. --24.152.xxx.xx




no collect sec deposit (by Arron K [MA]) Posted on: May 4, 2024 11:17 AM
Message:

Again, it may be different in where you are, but in my two states, if you don't cross your T's or dot your I's correctly, you can be in trouble.

As far as an incentive for leaving the place clean and remove their stuff, I'm not sure it has really helped,.I think the big thing is to be able to contact them by a lot of contacts, employment, SS# etc, after they leave and threaten small claims lawsuits or filing one may be better,..

and picture of all rooms before move in and post pictures, (ever watch those court shows? I auto tape them (Hot Bench and ole Judge Judy ) to watch when I have time,and fast forward of the non RE ones and the plaintiff often shows those before pics and the after move out pics which sometimes look like a garbage dump,..and the renter is asking for their Sec Dep back.

Here if you make the slightest mistake in handling the sec dep, the judge is quick to say "that's the law" and award x3 the sec dep to the tenant.

--73.126.xx.xxx




no collect sec deposit (by NE [PA]) Posted on: May 4, 2024 11:22 AM
Message:

Sounds like you might be watching too much tv court drama. Hereís the thing. You HAVE the deposit. As long as you cross your Tía and dot your Iís, what are you worried about? The likelihood of them taking you to court and winning is slim to none if you do what you have to do. Document, document, document. Plus you can always appeal. I would suggest canceling your tv subscription and actually going and sitting in on 10-20-30 real court cases in your jurisdiction. --24.152.xxx.xx




no collect sec deposit (by Arron K [MA]) Posted on: May 4, 2024 11:40 AM
Message:

I have gone to the local court and seen how the liberal judges act toward LL's. It bothers me more than the TV shows.

Its hard with all the requirements here to always catch things you may have done that's not to the liking of the state,. esp if you have a lot of tenants. judges are quick To make you pay for any failure to not dot an "I",..

' --73.126.xx.xxx




no collect sec deposit (by NE [PA]) Posted on: May 4, 2024 11:48 AM
Message:

Once political opinion outweighs the truth, itís time to move. Iím sure what youíre seeing is accurate and Iím sure it comes from the liberals. Distorting truth (changing SD into rent lock fee) to deal with their distorted truth (all landlords are slumlords who steal deposits) seems like a vicious cycle. Why canít you move? --24.152.xxx.xx




no collect sec deposit (by MikeA [TX]) Posted on: May 4, 2024 12:00 PM
Message:

I could see it in their unique situation. First off, they live in a state that can garnish wages. As long as you aren't dealing with tenants at the bottom end of the scale then they will be collectable. Second, these guys are lawyers. You could consider it drumming up business by having their tenants skip out on paying. After all, they can add their billable legal fees to the judgement, they are getting their fee paid out through the garnishment, and they most likely are drawing interest on what has not yet been paid.

--209.205.xxx.xx




no collect sec deposit (by zero [IN]) Posted on: May 4, 2024 1:31 PM
Message:

I can see benefits to both sides, but since I am not an attorney and this is my main income I would rather dangle the carrot that is the SD and even the newly added line about an extra dollar amount thrown in if I do nothing after they move.

I have to pay out of pocket for the rehab of the place. If they have a little something coming back maybe they will try a little harder. Even if it means I still can't give it all back.

Empty places make no money.

If I have to work on one that means I am taking time away from something else. Double whammy in most cases.

We do not have to jump thru all the hoops that you do in those two states. That could change my opinion. Also I am betting that the attorneys are not going in and cleaning up after the place is empty. That changes opinions a lot faster than just losing money. --107.147.xx.xx




no collect sec deposit (by Jim [CA]) Posted on: May 4, 2024 1:43 PM
Message:

You need a security deposit to pay for damage and unpaid rent. --146.70.xxx.xx




no collect sec deposit (by 6x6 [TN]) Posted on: May 4, 2024 3:15 PM
Message:

"You need a security deposit to pay for damage and unpaid rent."

Unless you somehow rebrand it. That is why I was wondering what the lawyers were doing and what they were calling it, because I guarantee they somehow rebranded it. --76.129.xxx.xx




no collect sec deposit (by 6x6 [TN]) Posted on: May 4, 2024 3:19 PM
Message:

I'm guessing here, but I think what is messing me and others up on what Brad is doing is the title and how it is presented. The general idea may be fine, IDK. I like thinking it over though and considering all things. --76.129.xxx.xx




no collect sec deposit (by plenty [MO]) Posted on: May 4, 2024 3:23 PM
Message:

Once it was very helpful. My sister had these little efficiencies. Studio or one bedrooms. It was challenging at times to fill them as at first the rent sounded high as all utilities were included. It was a financial burden for those seeking such units. Maybe it was just the way the rental was presented but when I dropped the deposit... No deposit -and- doubled first months rent, suddenly I had a lot of interest. These folks were month to month, no deposit, first months rent doubled and all utilities included... Wow they were never so happy! They never stayed long anyway and didn't do much cleaning anyhow. It was just a hassle to get the accounting to them and deal with their opinions as they weren't as financially savvy to really understand the law in regards to the return of the security deposit. But no deposit was attractive to them. We are going to clean anyways and most likely they aren't getting anything back anyhow, might as well get paid upfront. Then came the day sister wants to sell the property. That was a great day for her cause there were zero deposits to pass forward at closing. Maybe not to jolly for the buyer but less out of pocket at the closing table. There are some benefits. Sister also lived near by and was in the units often any sign of misbehaving and she just gave them notice to straighten up or move. Few extra turn overs one year, in one unit, netted $ bank for her and less paperwork. When the can only tread financially water for so long it can really look nice in the bank account. --172.59.xxx.xxx




no collect sec deposit (by 6x6 [TN]) Posted on: May 4, 2024 3:31 PM
Message:

That's right plenty. I don't know why but I forgot about that. I liked that idea too and the way it works if selling to the buyer.

I do have a question about that though. How did the tenants respond when you asked for double first months rent?

How did you explain it to them?

Did they ask if there was any type of return in the end?

--76.129.xxx.xx




no collect sec deposit (by Small potatoes [NY]) Posted on: May 4, 2024 7:44 PM
Message:

Those TV shows don't follow law, at least judge Judy doesn't. If she doesn't like you, you loose. Real Q is- do the lawyers rent B or C units? I would say my B tenants are less risk than my C but I see no reason not to collect a security. It's a pain but the 14 day rule in NY requires me to tighten up my procedure and stay on top of tenants as they exit. Unfortunately it's almost impossible to catch everything while the unit is occupied.

--172.59.xxx.xx




no collect sec deposit (by plenty [MO]) Posted on: May 4, 2024 9:21 PM
Message:

How did the tenants respond when you asked for double first months rent?

They seemed to welcome it. Perhaps they felt that they had been done wrong by deposits. Or maybe they don't like "risking" the deposit. It was just a term of getting the keys. They seem to shy away from deposits but was ok with first month's rent doubled.

How did you explain it to them?

No deposit! Move right in! First months rent double, after that XX each month

Did they ask if there was any type of return in the end?

Nope. They didn't seem to expect any either. They liked not cleaning. We just said take your stuff and broom sweep. Easy.. simple... Done and out the door --172.59.xxx.xxx




no collect sec deposit (by Steve [MA]) Posted on: May 4, 2024 11:37 PM
Message:

Arron K, for years I've always collected a first month's rent, a last month's rent equal to the FMR, a security deposit equal to the FMR & a lock / key fee which is currently $100.00 & going up to $150.00 for any new tenants. Personally, I've never had an issue with properly handling the SDs. I wonder if they are perhaps not collecting a SD for a different reason. --96.233.xxx.xx




no collect sec deposit (by zero [IN]) Posted on: May 5, 2024 7:54 AM
Message:

What does your lock/key fee entail? --107.147.xx.xx




no collect sec deposit (by ken [NY]) Posted on: May 5, 2024 12:24 PM
Message:

I think Brad does everthing as a rent to own.Therefore no scurity deposit to collect, i assume he collects a down payment and first months rent which come to the same as a first month and security. --74.77.xx.xx




no collect sec deposit (by Steve [MA]) Posted on: May 5, 2024 12:30 PM
Message:

Zero[IN], in MA as a LL I can only collect a FMR, a LMR, SD & a reasonable lock / key fee. We can't charge for things such as an application fee like LLs in other states can. So, during what I refer to as the "Honeymoon Stage" I like to get as much up-front money as possible. --96.233.xxx.xx




no collect sec deposit (by zero [IN]) Posted on: May 5, 2024 1:38 PM
Message:

But what all does it entail? Is it a fee for providing new locks and keys? Maybe a fee for verifying that the locks and keys are correct? Is it a deposit on the keys to be returned when they hand the keys back over?

Areas are all a little different. Some in the laws, some in the prices and some in the the way that tenants and landlords interact.

Just curious. --107.147.xx.xx




no collect sec deposit (by 6x6 [TN]) Posted on: May 5, 2024 3:40 PM
Message:

Thank you, plenty. --76.129.xxx.xx




no collect sec deposit (by Ray-N-Pa [PA]) Posted on: May 5, 2024 8:27 PM
Message:

There have techniques discussed at conventions about collecting higher rent instead of a deposit. I have never done it and I am not sure I would want to if someone had a credit score below 650ish --24.101.xxx.xxx




no collect sec deposit (by Steve [MA]) Posted on: May 5, 2024 10:23 PM
Message:

Zero[IN], it's a fee for the lock & key. It not contingent upon the locks being changed, the keys eventually being returned or verification that they have the correct keys. It is a fee & not a deposit that is returnable when the keys are returned. I guess you could say it's a form of revenue enhancement for us MA LLs. Not all MA LLs bother with & I'm not sure why that is. I suppose it's because there are lots of MA LLs who have no real idea of what they can & can't charge a tenant for.

As you mentioned different states have different rules & regulations that LLS have to deal with. For instance, some states allow a LL to charge a late fee as soon as the rent is late. In MA we can charge a late fee but not until 3 conditions have been met. Our first condition is that it has to be in the written rental agreement, it must be reasonable & the rent has to be 30 days late.

Ever since I bought my first 3 family property back in the early 1970s it been my policy to aways change or rekey the locks whenever there was a change of tenants. I also will do it during a tenancy if a tenant requests it but only if they& pay a new lock / key fee. I suppose that some LLs never bother to actually change or rekey locks between tenants but in my opinion that's a very foolish business move.

For the last 30+ years I've had all of my properties on a master key system. My key will get me into every building's common areas as well as the individual units. At move in the tenants get 3 sets with 2 keys per set for the multifamily properties and just 3 keys for the SFDs. For the multis the tenants have 1 key that works all of the common exterior doors as well as the laundry room & another key that fits the deadbolt on the front & rear door to their individual unit. --96.233.xxx.xx




no collect sec deposit (by zero [IN]) Posted on: May 6, 2024 9:04 AM
Message:

Steve[MA] thanks for the clarification. I like that. I might consider that as well even though we can charge for additional things that you can not.

I am stuck with 10% late fees. But I have it in my lease that it is due one day after late. Judge never said anything about it. I can't imagine being a full month behind and then starting late fees.

Every changeover in tenants means a new set of locks. Every time. No exceptions. I sleep better that way. No multi units, just a lot of duplexes.

Was master keying everything until a few months back. Since I no longer have employees I will be going to the unit anyhow. I keep a copy of all the keys in a binder in my truck. No addresses, all codes for properties. That way if someone snatches the truck I am not as worried that they will have keys to my little kingdom.

Also only have 23 doors right now. Two will be gone this year to contract sales. --107.147.xx.xx




no collect sec deposit (by RentsDue [MA]) Posted on: May 7, 2024 7:48 PM
Message:

Just because a lawyer is doing it doesnít mean it is the right thing to do. If I had listened to every lawyer in my life, I would be bankrupt and probably in prison. --174.192.xx.xxx




no collect sec deposit (by Ken d [NY]) Posted on: May 9, 2024 7:41 AM
Message:

Its not A lawyer, he says a lawyer group. Feels that its more trouble than its worth, of course as lawyers, they can more easily go after damages etc. --96.236.xxx.xxx



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