Even landlords need to have some reassurance that a tenant is going to take proper care of their home. The most common way of getting this type of “renter’s insurance” is through the faithful security deposit.
Charging a security deposit is important because it protects you whenever there is a breach of contract in the lease with your tenant. There is likely going to be a problem upon the tenant’s exit that will cost you money, so the security deposit goes towards the repair and you may not have to legally pursue the money that your tenant now owes you.
If you are new to the property management game, here are some of the main questions that you should explore when working with a security deposit for your property.
How Much Should You Ask For?
When determining how much to ask of your tenants for a security deposit, you first need to look at State Law and what the local market determines. Every state allows landlords to collect a security deposit. The difference lies within the location of your property.
In Texas, there is no limit on the maximum amount of security deposit that you can ask for. So, as far as Dallas properties go, it may be best to examine your surrounding landlord’s fees.
When is this Collected?
Always collect your deposit before the tenants move into your rental. If the full amount is not able to be paid up-front then you should not allow them to move in until they are able to pay the deposit.
Allowing a tenant to move in without a security deposit puts you at risk, and you will most likely never see a cent of the deposit.
What Are the Return Conditions?
It is the law in Texas that a landlord must return a tenant’s security deposit within 30 days after the tenant has moved out. Most landlords will have to return a security deposit unless there is some substantial damage to a rental home.
This is why it is important to make sure that you know how your property looked before tenants moved in. If you want to really be a great landlord, you should be honest with your tenants and provide them a checklist of the things that will help them get back as much of the security deposit as possible.
Security Deposits Can Be tough, Let Huntahome Help!
If you are a landlord or property owner that dislikes having to deal with security deposits and eviction processes on your property, you are not alone. Sadly, these processes and more undesirable work has to be done as a property manager, so the best way to rest easy as an owner is to put these problems in the hands of a professional property management group.
Huntahome is a full-service real estate solution company for property management, brokerage services and more in the Dallas, Fort Worth metroplex. We can even help with a security deposit escrow account, so that all security deposits are safe and secure. Give us a call today to find out about our services and how we can help get your properties under control.