Move in fee vs security deposit

[Antonia (Toni) Foster]

Hello,

I'm a newbie. I recently purchased a 3 unit rental property. It is fully occupied with great tenants. I charged security deposits but from the discussions I've been reading it sounds like a Move In fee is the way to go.  So I'm wondering if any of you have any input about changing from a Security Deposit to a Move In fee during the renewal of the lease? or if this is even an option.

And if I go with a move in fee, can the Security deposit be credited to the tenant as the last months rent?

I'm thinking it be best to just start fresh with my next tenants but wanted to get your input.

[Steve Nowak]

Be sure to check your state and local laws.  They can vary by location.  For example, in Massachusetts, a move-in fee is not allowed.  Security deposits are allowed, subject to very strict provisions.