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Updated over 4 years ago on . Most recent reply

User Stats

44
Posts
15
Votes
Tracy Tippett
  • Financial Advisor
  • Port St. Lucie
15
Votes |
44
Posts

Increasing value security deposit to incentivize good tenantry

Tracy Tippett
  • Financial Advisor
  • Port St. Lucie
Posted

Has anyone ever set up a increasing value security deposit that builds for the tenant and can be cashed out when they depart without arrears or damage. IE: adding 25-50 dollars to the value of the security deposit each time rent is paid on time. After a tenancy of 3 years at 25.00 per month their security deposit would be 900.00 larger then when originally collected.

I imagine that a cap of a few thousand would be a good idea.

Are there any legal pitfalls here?

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