My husband and I are purchasing a duplex that has tenants in both sides. We will receive the refundable portion of the deposits as well as any pre-paid rent. I was trying to find what the laws were in regards to whether or not we receive the non-refundable portion of the deposits paid by the tenant at move in. One tenant paid a non refundable deposit of $300 and the other paid $350. That seems like a high non-refundable portion, so I did not know if we would be entitled to part of that amount as a "cleaning fee" upon move out. On the lease it is not specified as a "move-in fee" but only referred to as the non-refundable portion of the deposit. I don't want to seem greedy but I want what is fair and as we are new in the industry I don't know what is standard.
@Jamie Owen I could be wrong but with my rentals that use non refundable deposits instead of security deposits (refundable), they basically count as rent. Meaning you get it when the tenant moves in. If I sell after a month or more of me owning that I don’t think you get any of that.
The only reason you get prorated rent is because when ownership changes you now own it. A non refundable deposit isn’t spread out over a lease. It’s all at once
Most likely applied as rent or some sort of application fee. You would not be entitled to that. The only money you are entitled to is the security deposits. The fact that his is/was a fee does not give you the right to it.
As for the security deposits you should get written confirmation from each tenant of the security currently held by current landlord.
hope this helps,
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.