Should my Security Deposit Amount = 1 Months Rent

Member since 2019 · 15k+ posts · 11k+ votes

7mo

Where my rentals are, the province caps damage deposits at 50% of the rent. They also have a template we have to use for leases (we can add things at the end), so things are more standardized and tenants get used to the basic terms in the lease which I think helps. They also have things like a move out check list for tenants.

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David PeschioBusiness Member

Richmond, VA · Member since 2019 · 358 posts · 181 votes

7mo

I’m not concerned about whether the deposit matches the rent amount — in fact, depending on the property, we’ll sometimes require more than one month’s rent as the deposit. What matters most for us is setting clear expectations from day one.

Our lease spells out in very direct language that the security deposit is never applied to unpaid rent, under any circumstances. It’s strictly for damages and compliance with the lease. Because we’re consistent with that policy and enforce it the same way every time, we’ve never had issues with tenants trying to use the deposit as their last month’s rent.

[email protected]804-909-1929

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Bo SmithPro Member

Hinton, WV · Member since 2026 · 1k+ posts · 373 votes

7mo

Smart move on the different amounts - that psychology works. I also require 60-day written notice for move-outs so I can collect final rent if they ghost. Do you require written notice or just verbal?

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Joel Miller

Member since 2011 · 152 posts · 113 votes

7mo

I don't think the amount of the security deposit has much bearing on whether the tenant will pay their final month's rent. In their minds, they're either going to stiff you or they're not. And if they do, it will be for some reason other than whether the security deposit happens to be the same as the rent. In fact, I have a policy to make sure the security deposit, which starts out at the same amount of the rent, STAYS the same as the rent by requiring tenants to add to their security deposit by the same amount of any rent increase. Whether a tenant pays their final month's rent has more to do with the good management of the property along the way, and the relationship the landlord maintains with the tenant.

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

7mo

Quote from @Kenneth Garrett:

I have a bit of a different philosophy. I never charge one month’s rent = to the security deposit. I do not want a tenant to think the security deposit is intended to cover the last month’s rent so I make it a different amount. Otherwise they leave and don’t pay the last month’s rent and then there is no money left for repairs.

I also stipulate in the lease, the security deposit does not cover your last month’s rent, it is specifically intended for repairs to the unit and balance returned to the tenant.

If rent is $2000, I would charge $1950. I’ve never had a tenant leave without paying the last month’s rent. Of course security deposits must comply with state, county and or city laws.

How are other landlords protecting yourself against a tenant using the security deposit for the last month’s rent?

Glad it's worked for you!

We charge Michigan's limit of 1.5x the rent.

From our 25+ years of experience, have to agree with @Joel Miller, the amount of SD has little to do with the tenant stiffing us on last month of rent.

[email protected]248-209-6824

Logical Property Management4.9459 Reviews

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Should my Security Deposit Amount = 1 Months Rent

Should my Security Deposit Amount = 1 Months Rent

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