Charging different Security Deposits for the type of Renter
I'm a new property manager and have a house listed on the market to rent. I suggested to the homeowner that we charge one months security deposit for section 8 renters and one and a half months deposit for non-section 8 renters. Is this legal in Illinois? Can I do that?
Most Popular Reply
Why would you do that? Seems counter intuitive to me. I don't operate residential rental property in Illinois, so I don't know about your laws, but it could be seen as discriminatory based on source of income.
It is important to set your Rental Criteria in advance of advertising and to make sure it is compliant with non-discrimination laws and the Fair Housing Act. Determine the base amount that you will require for a security deposit. In some states there are limits as to how much a security deposit can be. It needs to be reasonable.
In my rental criteria there are certain conditions whereby a tenant would need to pay a higher security deposit if by accepting them I am taking on higher risk. That works in my area and may or may not work in yours. Our rental criteria is available to view in the BP File Place under the Resources Tab - File Place - Other Documents. Also you can view our Tenant Screening Questions there. They are examples of what might be done, to give you some ideas.
Good luck! Welcome to Bigger Pockets!