? return security deposit for good history

[Yvette M.]

Does anyone have lease language where you would return a portion of SD for on-time rent payments and behavior?  I have a young tenant with decent credit, but no rental history and would like to offer as an incentive to return a portion of SD in 6 months or 1-year.

[Thomas S.]

Why ? Are you desperate to rent, is this the best applicant you can find ?

You do not tie the deposit to any guaranteed refund. It is to cover damages not rent.

If you want to offer an incentive raise the rent by $200 and give him a $200/month discount for on time payment. If the tenant pays late rent rises $200 and stay up for 6 months, drops if he again has good payment.