How much security deposit

[Kenneth Garrett]

I have a number of rental properties mostly single family/duplex.  I typically charge one months rent for a security deposit.  Recently I charged two months because the person was self employed and verifying the income was a little difficult even though the credit checks and background/evictions came back ok.   I am looking to expand to multifamily/commercial. 

BP Investors: What amount of security deposit are you requiring; 

Single Family

3 or 4 flats

Commercial/Multifamily 

[Marcia Maynard]

If rent is $1000, we charge $200 move-in administrative fee (non-refundable) and $800 security (refundable). If rent is $800 we charge $200 move-in fee and $600 security.

We don't make the security deposit equal to a month's rent because then it's too tempting for the tenant to think they can use their security deposit as last month's rent, regardless of what the rental agreement says.

Our state has no restrictions regarding security deposit amount, the market dictates that. Check to see what is common practice in your area.