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Updated over 9 years ago on . Most recent reply

User Stats

234
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Patrick Allen
  • Realtor
  • Tucson, AZ
139
Votes |
234
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Security Deposits

Patrick Allen
  • Realtor
  • Tucson, AZ
Posted

Hey all,

Soon to be landlord (to roommates not tenants, but I'm applying the same principles) trying to get all my ducks in a row for two December move-ins to the house I have under contract.

I am to the process where I need to intelligently quote rent and security deposits to my roommates. Rent is coming together nicely as I get a 10,000 foot view of all my monthly expenses, but how much to charge for the security deposit isn't so apparent. Living in apartments over the years, I have moved in with no security deposits, deposits equal to first month's rent, deposits of greater than first month's rent and deposits that seem to be quoted out of nowhere. I don't want to penalize my tenants, particularly because we will be living together open air and I will know precisely who damages what and in what way, so I'm taking it to the forums.

Should the security deposit be:

- 1 month's rent?

- a certain amount (e.g. 1 month) of mortgage payments?

- a certain amount of expenses not including mortgage?

- a nice round figure that seemingly would cover routine damage (e.g. $500)?

I would love a reason-based approach to it.

  • Patrick Allen

Most Popular Reply

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2,072
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Darren Sager
  • Investor
  • Tampa, FL
1,685
Votes |
2,072
Posts
Darren Sager
  • Investor
  • Tampa, FL
ModeratorReplied

I'd never take less security deposit than what the state allows.  Always take the maximum allowed by law and don't co-mingle funds with anything else.  Set up separate accounts for all.  Always best in my opinion for smaller rentals.

  • Darren Sager
  • 862-208-2287
  • Podcast Guest on Show #48
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