First, Last and Security Deposit

[Stephanie Bureau]

When you rent out a place how much do you require your security deposit to be? 1 month's rent, $1,000, $500 etc? What about requiring last month's rent and first month's rent? 

I was thinking of asking for security deposit and last month's rent at the time of signing the lease then have them pay first month's rent on the 1st (or whenever the lease starts). Is that too much or normal.

[Kelly N.]

We charge one month to 1.5 month rent for a deposit, depending on the apartment and whether or not we are allowing them to have a pet.  1.5x rent is the max in Michigan, and we are not permitted to collect the last month's rent in advance.

I am typically looking for tenants 1-3 months ahead of time, so at some point after they are approved I collect a holding deposit which will be deducted from their move in charges.  I used to only charge $200 for this, but have changed the policy to one month's rent, that way if they change their mind I have a little more compensation.  I have been at this for 3 years and only had one couple give me a deposit and not move in- the couple broke up so they forfeited the deposit.