I was hoping someone could provide me with some clarity regarding a deposit question. I have had a tenant in a rental unit for a 2 years now. They have renewed their lease annually. This year I will be increasing the rent for the tenant which I don't expect to be an issue. My question regarding the money they put down when they initially rented the apartment. They had put down a first month, last month and damage deposit. Should I be asking them to provide more funding so that the last months rent that I am holding would now equal the current monthly rental amount? The difference is not big ($25) but I did want to make sure to handle the process properly and fairly.
I wouldn't. That $25 makes it a double dose of potentially "unfair" bad news. Raise the rent with ample notice and leave it at that.
As always...we are in Massachusetts and there is a rule or law !
When raising rents, you can request additional funds to have your last month match up but you are not allowed to request more for the security deposit (stays at original amount "forever").
I am not a lawyer, but I hear you can submit a full letter (whatever its called) to fully terminate the lease and then you can restart a whole new lease having both the security and last month to match up...but its hearsay.
Also, if you do increase last month, do you need to provide another letter stating the increase in the escrow account?
Honestly, to me its not worth the effort, hassle and legal issue. Be happy for the monthly rental increase.....this is what I do.
Thank you. Both of your answers are what I had hoped to hear. Being in MA I was just worried about some regulation that required an owner to request the last months holdings to be increase.
@David Foscaldo Welcome.
Have you been giving the Tenant their interest on the Security Deposit and the Last Month's Rent every year?
You can increase the Security Deposit to reflect the increased Rent.
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