No damage deposit

1 Reply

I just bought a property, 2 houses, both with existing tenants. There was never any damage deposit in the old lease. Should I charge a damage deposit or continue status quo? Not sure how to enact a new damage deposit, tenants have been there at least 2 plus years

Whatever you do, you won't be able to do it, until their current lease is up. 

Before we get into how you add a damage deposit, why would you want to, if the tenants have been there 2+ years with no issue.  I'm assuming there is no issue.  You risk running off good tenants and dealing with the vacancy.  Unless, that's your goal.  If you want to get new tenants, that's an option.  In that case, you'll need to give the tenant the required legal notification, prior to the end of the lease, that you intend to change the terms.  In Texas that would be 30-days. 

There are a lot of things I would recommend you putting in place, to ensure there are no complaints or allegations of discriminatory practices or other problems, prior to any communication.  However, I'm still stuck on why you're worried about security deposit at this point.  Did you not review the terms of the existing leases, prior to your purchase?

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