Always a different number than the rent rate to avoid any future issues as Jon Holdman mentioned. Under $1000 a month I collect within $50 of the rent. Over $1000 a month I collect $1000

I set it to just under a months rent. E.G., $1000 for $1150 rent. That's to try to avoid any confusion with it being the last month's rent.

By 'deposit' you mean a security deposit? What's the norm for your area? Here in NJ, 1 - 1.5 months is average. If they can't afford a month's extra rent they don't belong there.

I go a little over the 1 month's deposit...usually $200-$300 over. That way, if they try the "keep the last month's rent" thing (been there, done that), at least they've got a little bit of motivation to take care of/clean up the place upon departure.

For those of you who make the deposit amount different from the monthly rent, it might make you feel more comfortable that because the amounts differ that it cannot be called the last month's rent - but in that last month, when the tenant just hands over the difference between the rent and the deposit and says "keep the deposit for the rent owed for the last month" - well, the problem really isn't solved now, is it? You just have to hope that the tenant doesn't try to pull that stuff ...

Never thought about it that way....that is tenant trying to say deposit was the rent. Thanks

Wow. I have been doing the opposite. I have once reduced the first months rent but always get larger deposit. I guess the other way makes sense too as I have to return the deposit if they take care of my property.

My rental is low income - 550/month. I require 300 for the deposit. Realistically, there are a lot of good applicants that are not going to have 1000+ dollars to move in to my rental. If I had a higher priced rental, I'd ask for more - like 80% of the rent.

Apartments generally have smaller deposits. Consider what you have to lose. If they can walk out with thousands in appliances, washer and dryer and so forth, a hefty deposit would be in order. I generally get a month rent and lately last mo too. The market is strong, renters are flush. In the past if they don't have last mo I spread it out over the lease so I end up with it. Without last mo they just say bye, use my deposit for last month, even if it is a little different they can send in a little cash.

I typically go with an amount close to, but not the same as rent. I don't want the tenant to get the idea that the deposit is the last month's rent, or can be used for rent anytime.

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Updated over 12 years ago, 08/30/2012

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Albert RubioPoster

Amarillo, TX

General Landlording & Rental Properties

Deposit amount?

Albert RubioPoster

Amarillo, TX

Posted August 27, 2012 14:38

Best way to determine a deposit for rental property? SOme say a months rent seems high for a $800 a month rent. Or a percentage of the rent. We plan on not allowing pets. Whats your opinion?

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