Having tenants in our rental properties can be great things when we
go through the proper suggested tips to find the perfect fit, but just
like in anything, there can be ups and downs. Sometimes we find ourselves
in situations that are not ideal and we have to start asking bigger
questions such as âWhat do we do from here?â and âWhat about the security
refund deposit?â By following these steps, we can help you make the best
decisions when it comes to your struggling tenants and their security deposits.
1. Double Check to Make Sure Deductions Qualify
In some states, they allow you to use the security deposit refund towards
the damage which would be considered more than just normal wear and tear.
This is the case in states such as Connecticut and New York. In other
states, such as Indiana, this is not allowed. So most importantly, make
sure that the security fund is able to be used towards something useful
if necessary.
2. Be Sure to Document All Damages
At your first walk through inspection, you will be able to clearly see
what needs to be done, but as important as it is to walk through and go
through the checklist, it is equally important to document all of these
things findings. If possible, arrange a time with the tenants that you
are able to go through it together and make the list together to reduce
the possibility of deposit disputes.
3. Create a List of All Deductions
Along with documenting everything from the inspection walk through with
the tenants, make sure to create a well managed list of the deductions.
The items should be written and clearly state how to deposit will be
applied back towards things such as rent, cleaning, and other financial
requirements which have been stated in the signed lease agreement. Also
make sure to include the invoice for repairs and all required receipts.
In all cases, follow the state requirements and laws and handle the
tenants security deposits in the best possible way. Not every tenant
will be happy with the outcome, but knowing that you did the best thing
possible will leave you with the peace of mind.
Contact our PMI Inland Empire office, to find out
more about the subject of managing security deposit refunds.
