All Forum Posts by: David L.

Thanks for the replies. If I am to understand this right, the insurance I will maintain on the property as a "rental" will cover any rebuilding costs, and tenant's insurance will cover their belongings. Tell them $100K liability is good if they feel comfortable it will cover all of their assets.

Thanks again.

- Dave

I tried searching around here but couldn't find a good answer.

I will be contacting my insurance company to switch my current insurance to a rental property vs. my primary home.

My renter has agreed to carry renters insurance, but asked how much he should get the policy for -- good question, I'm not sure how it's supposed to work. He said there was an amount for liability and for personal; currently has a quote at $100K liabilty/30K personal. IIRC, my property was valued at ~$200K, with the house costing ~$160K to rebuild, according to the last thing I got in the mail.

Thank you.

OK scratch those updates above, they aren't pasting right. This is all I find in regards to security deposits. I also found the bi-weekly payment arrangement addendum for Maryland but it doesn't mention anything about limits (nor does the code below).

§ 8-203. Security deposits

(b) Maximum amount. --
(1) A landlord may not impose a security deposit in excess of the equivalent of two months' rent per dwelling unit, regardless of the number of tenants.
(2) If a landlord charges more than the equivalent of two months' rent per dwelling unit as a security deposit, the tenant may recover up to threefold the extra amount charged, plus reasonable attorney's fees.
(3) An action under this section may be brought at any time during the tenancy or within two years after its termination.

Md. REAL PROPERTY Code Ann. § 8-203

EDIT: I don't know why it asks for a login/password. I'm having a heck of a time pasting the code. Sounds about right for a gov't website. :)

http://www.lexisnexis.com/hottopics/mdcode/

Roy,

If a lease is signed for a year, is it still considered a bi-weekly rental? I don't want to hole myself into being only able to legally accept less than half a month's rental fee as a security deposit. At least in your area? I'm looking to find out what it says specifically for MD but all I can find so far is that I can't take more than two months value.

Good questions, I will look into that...thank you.

- Dave

I've been doing some research on the pet addendum for my new lease that I am drafting, and came across this thread. I'm curious how everything turned out?

Also, I understand the deal with spaying/neutering in the big picture, but how does it specifically apply in a landlord/tenant situation? I rented two houses with dogs before I became a homeowner (and shortly a LL), but they were both spayed/neutered as part of the "package" of getting them from the pound.

@Roy N. , Thanks for the idea, but I may have used the wrong phrase. He wants to have it pulled directly out of his paycheck so he doesn't even see it, not physically deposit it to my account. I believe "allotment" is the word I should have used. On payday (every other week), just have $X get sent to me.

I only have this one property so that last part wouldn't be an issue either way.

Is it common for people who do bi-weekly payments to front-load the landlord with enough money in the account to cover the difference until the balance evens out?

Let's use $2K/month as an example.

2,000/month x 12 payments/year = 24,000/year

Bi-weekly at the same rate would need to be reduced to = 24,000/year.

24,000/26 payments = $923 per payment

$923 x 2 = $1846 which is going to be short $154 of what is due, not to mention the payment to the bank is due on the 1st, not randomly throughout the year.

Absolutely...I need to make sure he is committed beyond a handshake and a verbal approval; otherwise I am going to be in a jam.

The other thing I have to figure out is how to do bi-weekly payment via Direct Deposit vs. monthly. (His request - "set it and forget it"). I'll see what I can scrounge up on here for information.

Mine will be in Maryland so I looked up the local information found here, that's where I got the 3% from and became confused.

http://www.peoples-law.org/node/236

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Return of the Deposit to Tenant; Interest

The landlord must, within 45 days after the end of the tenancy, return to tenant the security deposit minus any amount which the landlord may rightfully withhold. Simple interest of 3% per year must be paid on security deposits of $50 or more and must accrue at 6 month intervals from the day the security deposit was given. Interest is not compounded. If the landlord, without a reasonable basis, fails to return any part of the security deposit within 45 days after the termination of the tenancy, the landlord may be liable to the tenant for three times the withheld amount, plus reasonable attorney’s fees.

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I realize that 3% on $2,000 is only $60, but still seems odd that I am held to make up for the difference in interest on a law that was written probably back when ING Direct was giving 5% interest on a savings account. (Guessing)

Old topic, relevant question I found doing a search.

It's 3%. A savings account only pays less than 1%. Are we supposed to come up with the other 2% out of pocket?

When I was a younger fellow, an idiot acquaintance of mine did a similar thing in one room of the place he was moving out of, spelling "REDRUM".

Clever. Crude, but clever.