security deposits

[Jim Biggs]

Curious? What % return 100% of security deposit? What do you think is the average $ amount applied to repairs? And, how does that fit into some of the new insurance products that are being marketed to landlords in lieu of security deposits?

[Michele Fischer]

I think of the new "bad tenant protection" insurance offerings the same as I think of other insurance - only to be used if there is a big loss, not to cover the recurring smaller expenses associated with tenant turnover. Once a claim or two is made that the premiums jump.

I tell new tenants that we normally see two extremes - those who get all or most of their deposit back, and those that still owe us hundreds or more after the deposit is applied. We don't see much in between.

I have done 16 tenant move outs to date. Five of those got 100% deposit back. The rest owe us money, ranging $75 to $3,700. Our averages are as follows: $350 repairs, $280 cleaning, $85 unpaid utilities, $360 unpaid rent.