How much you charge for a security deposit??

I always wanted 1 month's rent for deposit to hold the unit, and 1st month's rent when I give them the keys. I am re-evaluating this...

Maximum amount which in NC is 2x the rent on an annual lease.

I charge one month's rent. I just, last week, implemented SD increases to match the rent increases.

Learned that here. I think maybe from WMH.

I used to drop the SD because a place was not cleaned properly. New tenant would do it for reduced price. I no longer do that because I feel it starts us out on bad terms, saying that it is OK for the place to be dirty.

I have a 20 year tenant who will be moving out this year. His SD was a whopping $250. I know that he will not leave the place rent ready. That money will not cover much of anything.

There is no incentive for them to get the place rent ready when there is no money lost.

I require a security deposit equal to the face amount of the rent on the lease. This means that, if the amount I'm advertising the unit for is $800 (which is what I want to get for the unit), that lease would be written at $830 because I offer a $30 prompt-payment discount if we have the rent in our hands by the 1st. So, the security deposit would be $830. Then, I have the tenant add to the deposit an amount equal to any rent increases over the years so that the deposit remains the same as the rent.

We used to get billed for unpaid sewage only. But it was not a good thing ever.

One town still does it, although I think the state passed a law saying it couldn't happen.

Another small town I own in would charge the back water and sewer bills to the owner. One time I tried to get water on so I could clean and they said they would not do it until I paid the over $600 outstanding bill. I went in and talked to the clerk at the office. She turned the water on without back pay in my name. I kept all the water in my name at each place I owned in that town for years.

Someone with a lawyer called them out and the town's attorney agreed that they couldn't do that so they stopped.

I have tried to get them to inform me when someone is falling behind, but they claim privacy laws and will not do it.

I wish they would supply an owner's copy to me, or at least allow me to check in periodically to be sure all is paid for.

So many different answers to choose from GEORGE.

I charge SD by the bedroom. It's a college town, sometimes roommates don't even know each other.

i.e. 3 bedroom place base price of $1000 plus $100/room or total of $1300 SD. Some destroyed their rooms while others did not.

When I return the security deposit, the itemization lists damages for each bedroom separate from the common areas. The distribution is to be figured between the residents.

ZERO: I would go mad dealing with some of the utility nonsense laws.

Oreo, it was maddening for sure. Especially since each town has its own way of doing things and its own rules.

My state only allows 2x rent for security.

I’m afraid of Fair Housing, and afraid of losing money.

I ask for 2x rent plus an incentive of $3000 plus a guarantor. I get a lot of upset people, nasty emails and yelling. But…..I get it after going through many people. I’m consistent and fair. I ask this high amount for everyone.

Lesson: charge more than 1 months rent. You don’t believe me. Do what I did. Start with 1.5x rent and see what it takes to get it. Then, work up to more. Again, you were trained to think 1 month’s rent. You dont neeed to run a marathon, just run to the mailbox to start.

Residents stay with me for years and I work for them.

When it’s time to move, residentsmust allow me access for 60 days to show the unit….so I can find another high security deposit, plus incentive plus guarantor resident.

I would rather go through a lot of people, have people get mad at me than lose money.

Reader, before you get upset, please provide the following for me:

1) A qualified resident at no charge to me. You do the work.

2) Money to pay for my repairs, $12,000 roof this month, $10,000 septic system last month. I have the money because I disqualify 98% legally and quickly.

3) Please allow me to use your 5th grade math skills. $10,000 for a legal eviction does not equal 1 month rent. Sorry. I passed the 5th grade and graduated with a finance degree from a top tier school. Your 5th grade diploma is more valuable.

4) Go online to verify and ask why Family Dollar was just sold for $1 billion and Dollar tree paid $9 billion. And, the stock is up 15% this year. I don’t see it. Buffet does not see it, someone lost $8 billion and their 5th grade education did not stick.

My state only allows 2x rent for security.

I’m afraid of Fair Housing, and afraid of losing money.

I ask for 2x rent plus an incentive of $3000 plus a guarantor. I get a lot of upset people, nasty emails and yelling. But…..I get it after going through many people. I’m consistent and fair. I ask this high amount for everyone.

Lesson: charge more than 1 months rent. You don’t believe me. Do what I did. Start with 1.5x rent and see what it takes to get it. Then, work up to more. Again, you were trained to think 1 month’s rent. You dont neeed to run a marathon, just run to the mailbox to start.

Residents stay with me for years and I work for them.

When it’s time to move, residentsmust allow me access for 60 days to show the unit….so I can find another high security deposit, plus incentive plus guarantor resident.

I would rather go through a lot of people, have people get mad at me than lose money.

Reader, before you get upset, please provide the following for me:

1) A qualified resident at no charge to me. You do the work.

2) Money to pay for my repairs, $12,000 roof this month, $10,000 septic system last month. I have the money because I disqualify 98% legally and quickly.

3) Please allow me to use your 5th grade math skills. $10,000 for a legal eviction does not equal 1 month rent. Sorry. I passed the 5th grade and graduated with a finance degree from a top tier school. Your 5th grade diploma is more valuable.

4) Go online to verify and ask why Family Dollar was just sold for $1 billion and Dollar tree paid $9 billion. And, the stock is up 15% this year. I don’t see it. Buffet does not see it, someone lost $8 billion and their 5th grade education did not stick.