Do you collect additional security deposit as you raise rent?

[Paul Bowers]

The security deposit is most typically equal to a months rent.  As tenants renew their lease and the rent increases are you collecting additional security deposit as well?

[Kristina Heimstaedt]

@Adam M. I live here and know the market pretty thoroughly. We typically target millennials who are more than likely to be buyers some day. Because they fit this profile, more often than not, it is not their agenda to be professional tenants. I also like to respond to situations by presenting tenants with the following:

1. the law

2. how we operate

3. the bro deal that I'm willing to offer

Overall, we have a great product. Our tenants rent from us for that reason. However, they stay because we are great landlords. I had a tenant move out of state for about a year or two, but when she was looking to come back, she texted me first and I was able to place her in another unit when she came back. That's pretty typical for us or we hear from prior tenants who have boyfriends/girlfriends looking to move to the area. I think the combination of great products and excellent service make it pretty easy to operate in California. 

We've had a few challenges, but we've learned how to do a pretty solid job of screening them out.