Can landlord raise security deposit?

Question

I wanted to know if a landlord is allowed to raise their security deposit every time they increase the rent. Whenever they raise the rent, they want to increase the security deposit so it is as much as the rent.

Is this legal? Can they do this?

Is this legal?  Can they do this?

Jeff Takle · Answer

I have to disagree with kaosproperties' statement:

It is NOT legal, at least not in all states, to raise the security deposit mid-lease. In Massachusetts, the law is clear. Here, you can charge an equivalent of one month's rent only as security deposit and the court has subsequently ruled that the "one month's rent" it is equivalent to is the very first month's rent. So, if you started renting for $500 / mo and you could up it to $600 / mo in month 8, your total security deposit still cannot exceed $500 / mo.

However, if the tenant is on month-to-month, you can give them 30-day notice and increase the rent and deposit. OR, if a lease is coming up for renewal, you can increase the deposit within limits of your state. BUT, if they are under a current written lease (not month to month) then that lease must generally expire before you can increase the deposit. UNLESS, it is a pet deposit and you are just now allowing pets, and your state allows you to charge pet deposits. Lots of rules...
 :beer: 
Each state has different, and very specific, laws about what can be done with security deposits and there is no cookie cutter answer. I have IREM's list of all state's security deposit laws if you are interested: RentingYourHome.com/forms/State Security Deposit Laws.pdf

Cheers,
Jeff

N/A N/A · Answer

Yes, it is legal.

Generally, landlords put the security deposit equals to monthly rent.

I put security deposit just under the monthly rent to make it harder for tenant to "try" to use security deposit as last month's rent.

Debbie