New Security Deposit Laws are on the rise!

[Detra Harris]

Hello, I've been getting calls regularly from start-up companies offering what they call "guaranteed security deposit fee".  I'm old school and just getting the hang of online rent payment software (awesome juice -btw), therefore, I didn't respond much to these solicitations.  However, the majority of small claim cases related to tenant/landlord issues involve security deposit matters.  This is something worth looking into.  I own several properties in Ohio, therefore, this topic is of interest to me.  As a matter of fact, Alabama, California, Connecticut, Maryland, New Hampshire, North Carolina, Pennsylvania, and Virginia are jumping on these new initiatives.  I guess we investors should really take a look at this a bit closer.  Tenants will have 3 options to by-pass security deposits:  1) Apartment security deposit insurance, which may range from $3 to $20 a month paid during the duration of the rental, depending on the monthly rent. 2) Installment plans, which would be paid over no fewer than six months. 3) Payment of a smaller security deposit, which must be less than 50% of the first month’s rent.  Are you in favor of this new law?  or could it be problematic for property owners?