Updated over 5 years ago on . Most recent reply
Security Deposit (New investor)
Hello I am getting ready to look at buying a duplex in LBK Texas in the next couple months. How does everyone determine what the security deposit should be per door.
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Jacob Sanders, it can be anything you want it to be. One month's rent is most common. As you have probably seen, $99 (or even $0) Security Deposit is a fairly common marketing tactic for larger complexes (and can be used if needed). Make sure you understand your laws regarding deposits.
In Ohio, you can charge what you want, but if you charge more than 1 month's rent and the lease term is more than 12 months, you owe the tenant interest on the amount over 1 month and for the period beyond 12 months. I mention this, not to say you can't or shouldn't charge more, especially if the tenant's risk profile dictates a higher deposit, but to make sure you know and understand the laws.