How Much Security Deposit Is "Enough"? One Month? More?

[John Thedford]

After having recently being burned by a tenant that didn't pay the last months rent I decided to raise my security deposits. Previously, I was charging one months rent amount. Now I am charging about $500-$600 over that. I just put a tenant into a property that rents for $1095 and charged $1600 as a security deposit. I hope this will stop a tenant from telling me to "keep the security deposit" in lieu of rent. As long as I do this with all applicants then I am not discriminating against any single applicant. Do other landlords use a similar tactic?

[Will Barnard]

First off, it is always a good idea to use a security deposit amount different from the rental amount. The security deposit is NOT a last months rent amount like some renters believe.

Secondly, if your market will of allow for it, get as high of a deposit as you can. That deposit does not have to be all cash, it can also be a pledge of some other asset such as a car.

Lastly, if your last tenant left you with damages (either physical damages or failed to complete their lease obligations), the security deposit you kept may or may not have covered that loss and you should be entitled to seek a judgement against them for monies still owed.