?Security Deposit (in California) question

5 Replies

We are about to close on a triplex in Fresno CA, which has 2/3 untis occupied. 1 of them has security deposit on file, and the other doesn't (family friend of past owner) 

I cant find anything that covers this situation, and wonder if anyone knows what kind of time frame I can require a deposit to be handed over? Thanks in advance for any help

@Garrett Mayo  are they a good tenant? Paying fair market rent?  Week one there is a good chance they will be moving.... If the answer to the above question is NO.  If they are a good tenant paying fair market, sign a new lease with them and dont push the deposit collection.

Frank

@frank R. They are good tenants, so that sounds like the correct route to go. Thanks! 

Hi Garrett,

Well from what I found, there's no real rule about time frame for collecting security deposit. I've allowed a tenant to break it up over a couple months before. CA mostly has rules about the maximum you can collect as well as the rules for paying interest.

While Frank's opinion is valid, one thing to keep in mind is that these were family friends of the previous owner, so there's a chance they will be less beholden to you to be fair. They may decide to move and not give you notice.  Really depends on your comfort level of rocking the boat, if they're paying market rent and if you can handle a turnover.

Also keep in mind that if these people are still under a lease other than month to month, you can't do anything until that lease expires and you can create new terms.

If you're going to do it, I would say using the excuse of being the new owner is the best time to make changes. Doing it a few months down the line will be more painful since they may think the threat of a change has passed.

Good luck!

Allen

@Frank R. 

They are good tenants, so that sounds like the correct route to go. Thanks!

Originally posted by @Allen Maris :

Hi Garrett,

Well from what I found, there's no real rule about time frame for collecting security deposit. I've allowed a tenant to break it up over a couple months before. CA mostly has rules about the maximum you can collect as well as the rules for paying interest.

While Frank's opinion is valid, one thing to keep in mind is that these were family friends of the previous owner, so there's a chance they will be less beholden to you to be fair. They may decide to move and not give you notice.  Really depends on your comfort level of rocking the boat, if they're paying market rent and if you can handle a turnover.

Also keep in mind that if these people are still under a lease other than month to month, you can't do anything until that lease expires and you can create new terms.

If you're going to do it, I would say using the excuse of being the new owner is the best time to make changes. Doing it a few months down the line will be more painful since they may think the threat of a change has passed.

Good luck!

Allen

Yea Doing it now vs later we will do. I was just curious if (which you answered) we can require it prior to signing a new agreement. Thanks for the input.

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