Pros and Cons: Security Deposit vs Move-In Fee

[Jake Valkusky]

Hello, BiggerPockets!

After doing some reading and our previous experiences, we are debating if a Move-In fee would be a better option than a Security deposit. Does anyone have information or a list on the Pros and Cons for Security Deposit vs Move-In Fee?

I am looking forward to your information!

[Chad Hale]

Agreed security deposit is a good incentive.  

Make it clear to the tenants that you want to return 100% of their deposit and you will happily do so after they return the unit back to you in the same or better condition than they received it.   If you work in a professional manner, the tenants will believe you.  

I am returning 100% of a security deposit this week.  I met with the tenants two weeks prior to end of lease.  We went over the move in move out sheet.  I noted several items that needed attention or cleaning.  I also reminded them that I wanted to return the entire deposit.   They addressed everything.  

I have a clean unit that is move in ready and they get 100% of their security deposit back.  Win win for all involved!