New to MTR-what to charge for rent 1st & Last & SD ???

Question

Hello all, New to MTR. I have been burnt this month with my first set of travellingn professional tradesmen. They all left at the end of the month with no notice and did not pay rent. My husband seems to think it is fair to ask for 1st, last and Refundable SD. (rent is 1100/month 1 bedroom condo and 900/month master suite no shared bath in a 3 bedroom). That is a lot of cash 3300 / 2700 upfront. I know I had to pay 1st last and sd of 1 month each in CA--it was a massive wad of cash to have, but there were 2 of us. I am in WI where the 2 properties are at. It seems unreasonable to me for some reason. BUT-I did just get stiffed 3 rents. I have their SD, however there is damage in one of the units that part of the SD will be used to repair.

Please- any advice is welcome!!

Allen Duan · Answer

We require the first month's rent and deposit upon booking and never had any issues from tenants about that. I would feel very uncomfortable only requiring the deposits. I view MTRs more similarly to STRs than LTRs, where STR bookings are usually due in full at the time of booking. Depending on how you view MTRs, more similar to STR or LTR, a lot of your processes will lean one way or another. There's no right or wrong view, just pros and cons.

Zachary Deal · Answer

I think first and a refundable security deposit for every stay. I think it would be generally fair to adjust the security deposit depending on length of stay (if someone stays longer they are more likely to cause more damage, wear and tear, etc).

Bonnie Low · Answer

Is your property listed on Furnished Finder? I find it's helpful to look at what other owners are asking for in terms of deposit in your market place. Don't worry about how it makes you feel - I know that's easier said than done. But rather, what is common for your market? I did get burned (a bit) by my first traveling nurse who booked for 3 months. I only charged a $250 non-refundable deposit, which is basically my cleaning fee. Her contract was abruptly cancelled by the staffing agency just one month in and she asked to leave. While I could have attempted to enforce my lease agreement with her and insist she pay, I know I would ultimately have had to take her to small claims court if she refused and the juice wasn't worth the squeeze to me. And, as it turned out, I was able to get it re-listed and rented very quickly so I only ended up with a unit that was vacant for little over a week. But, lesson learned...I now have increased my deposits. I still charge the 250 non-refundable deposit. I also collect a $500 refundable and a $250 refundable pet deposit. IF someone were to leave early, I could keep the $500 refundable because my lease agreement states it covers damages as well as any unpaid portion of rents. They certainly could attempt to challenge it - we have a very litigous society - but at least I know the money is in my account if I need it. I also have 21 days to process the refund of deposits so that gives me ample time to re-rent the unit. You just have to kind of feel it out for your market, but do some research to see what is common in your area and use that as a starting point.

Jamie Banks · Answer

I’m sorry that happened to you. I charge a $500 refundable security deposit and $250 refundable pet deposit. I’m a MTR property manager and a few of my clients have larger deposits and non refundable pet deposits with a max of about 30% of one months rent.

At the time of a reservation the security deposit is due. First month’s rent is due 3 days before move in at which time I give the guests my guidebook, access instructions, etc. I have it stipulated in the lease that if someone fails to pay and subsequently move in they’d be forfeiting their security deposit.

Jordan Callaway · Answer

@Kristin Vanderkin-Jus $550 up front non refundable move in fee

Kristin Vanderkin-Jus · Answer

I am curious about the early termination fee. I don't know that would work in my area-would also have to check into whether it is legal in WI. I am charging about 67% of rent for refundable security deposit. I lost one potential renter because of the SD. But, being new to MTR's, I would rather be lean one month than get burned. (That is after majorly getting burned with non payment and horrible condition left behind). *During high season, do you mean you collect all rent for the whole stay?

Susan Rutherford · Answer

for MTRs, I require 1st month’s payment and security deposit (flat fee which works out to about 35% at lease signing. I also have a clause in the lease that stipulates an early termination fee (= 2 months’ rent which is the max allowed in my state.)

During the high season, I require full payment (rent + taxes + security deposit up front).

Kristin Vanderkin-Jus · Answer

Thanks for the replies. I am shifting and growing how I approach this.

New to MTR-what to charge for rent 1st & Last & SD ???

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