Opinions of Security Deposits/Fees
Good Afternoon!
Wanted to know thoughts on a security deposits/fees. I have a property that is going to be rented out at $1450/month. The security deposit will be $1450 as well. Out of the $1450 we take a $250 Non refundable cleaning fee out.
I have a new potential tenant that has one medium dog and one small dog. We usually charge a $250 pet fee for the first dog and $125 for each additional dog...that is added ON TOP of the $1450. (this would make the deposits/fees $1825)
I was thinking of having the $1450 security deposit inclusive of the non refundable pet fee of $375 and Cleaning Fee of $250. So the maximum the tenant could get back would be $825. (1450 less 625(fees) is $825)
I wanted to see if anyone else does this? or anyones thoughts on it.
Thanks!
Jenn
Most Popular Reply
@Jennifer Salazar add the pet fees to the move-in money amount and keep your security deposit amount. If the tenant can't afford that then they can't afford the pets they have. That will likely come back to you in the form of damages to the property. I would suggest you and @Dan Schwartz reconsider your language. Fees taken from deposits can be problematic. We all know, if it's a fee then the tenant is not entitled to get it back. If it's a deposit if the tenant can get it back. If you have ever been to court over your security deposit you might be surprised at how the court views the term security deposit. I know of one landlord that collected a pet deposit. The pet did more damage than the pet deposit amount so the landlord kept some of the security deposit. The tenant sued and the court awarded the tenant back the amount in excess of the pet deposit. If you stand before a judge and a tenant proclaims they left the place clean and you cannot refute that, I would not be surprised if the judge awarded them back the "cleaning fee". Advertise a lower deposit and add the cleaning fee to the move-in money separately. This removes all confusion about whether or not it could be returned.