Portland OR lawyer says don't take security deposits-Zoom meeting

[Jeff S.]

And good idea to give them back to tenants. The problem is the city is requiring a depreciation schedule for all components, not just personal property either. These forms are so complicated that an attorney is likely to find a way to file a lawsuit for making mistakes on the forms and asking for many times the deposit. Basically it is going to cost you more in attorney fees to fight than the deposit plus tenants can go back on previous deposits on old rental agreements and sue. This was in an RHA meeting normally a dinner meeting with speakers. Ready to hand those deposits back?

[James Furlo]

I understand the intent behind the code. They don't want landlords keeping security deposits when it's simply "wear and tear". And they're trying to create an objective and measurable way of tracking it. No wide-spread system is perfect, but I think you can succeed if you follow the golden rule: "So whatever you wish that others would do to you, do also to them." Practically speaking:

1. Screen for responsible people (as much as is possible in Portland). Do this well and the rest will take care of itself.
2. Charge a reasonable deposit. What would you want to be charged?
3. Only keep deposits if there are clear signs of damage (99% of the time I return the whole amount, even if there's some damage).
4. Finally, remember why doctors get sued. It's not because of their skills, it's because of their poor bedside manners.

In the book "Blink" by Malcolm Gladwell, he write (underlines are mine):

“The overwhelming number of people who suffer an injury due to the negligence of a doctor never file a malpractice suit at all. Patients don’t file lawsuits because they’ve been harmed by shoddy medical care. Patients file lawsuits because they’ve been harmed by shoddy medical care – and something else happens to them."

and

“What comes up again and again in malpractice cases is that patients say they were rushed or ignored or treated poorly.”

Therefore, treat everyone fairly and with a smile. Be present when meeting with them and show empathy while remaining firm in your promises (and their consequences). You know, how you want to be treated. Then you won't have to worry about being sued, and you'll only need to do the intense accounting for those few times you actually keep part of the deposit.

Did I mention that screening is important? :)