Property Management Blog

Security Deposits & Why They’re Important

System - Thursday, February 7, 2019
Property Management Blog

Being a Property Owner can have you living on edge at times. Renting out your property and trusting that your tenants will be respectable to your home can be, well, stressful to say the least. That’s why security deposits are SO vital.

As you probably know, when a tenant puts down a security deposit, that money is held as an agreement to ensure that you (the property owner) are not reliable for any damage during the term of the lease. It’s usually in the tenant’s best interest (as well as the property owner) to conduct their OWN inspection upon moving in, and log, photograph, and document any existing damages/concerns. That way they can’t be held accountable for anything that was there, and this is in their right to do so.

  • Here are a few things you can ask of your tenants or tell them beforehand, to prevent against potential damages (BEFORE they happen)
  • Be clear on your boundaries and what can and can’t be done in the home. Of course this is best to put right into your lease agreement!
  • Ask them to use adhesive hooks to prevent the use of nails and brackets.
  • You can suggest putting down rugs. These help in the event of major spills and are great for protecting wood floor as well, if you have them!
  • Request that they always ask for your express permission before painting, renovating, or adding anything to the home that could be permanent.
  • If you are allowing pets, make sure to have a detailed pet policy set in place.
  • When the tenants lease ends, ask them to make sure the home is cleaned thoroughly. Shampooing carpets, scrubbing the tubs, appliances, etc.

Some property owners also hire a cleaning service to come and clean the home once their tenant leaves. This majority of the time is taken out of the tenants security deposit, but can be one less thing for them/you to stress about upon their lease ending. If it is optional and the tenants declines the offer of a cleaning service, make sure they are aware of your expectations of the cleanliness for the property. Having rules/guidelines for your tenant to follow will make your renting experience far less stressful, not to mention a great source of income!