Largest security deposit you ever charged?!

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Brian Ploszay
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
7y

Many Chicago landlords are opting not to charge any security deposit.  Sounds crazy, but the compliance laws are very difficult.  If there is ever an eviction, and you trip up on a security deposit provision, it creates trouble.  So non refundable move in fees are charged.

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  • Robert Biggerstaff
    Contractor · Pensacola, FL · Member since 2018 · 303 posts · 240 votes
    7y

    $1750 on a place that the rent is 675 a month… They had bad credit and one evictions in the last five years

    0Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    7y

    1.5 x rent

    0Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    7y

    @Cameron Riley In Connecticut state laws govern how much you can take for a security deposit from tenants. Here the max you can take for a security deposit from someone under 62 is the equivalent of two months rent and for tenants over 62 the max you can take is the equivalent to one months rent.

    Check your local laws.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    I once allowed a company to rent and place a foreign worker in the home. I charged the full six months rent in advance, a one-month security deposit, and a mandatory $500 cleaning fee.

    The DIY Landlord Book4.7248 Reviews
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    0Reply
  • Daray Olaleye
    Real Estate Investor and Business Coach · Houston, TX · Member since 2016 · 107 posts · 77 votes
    7y

    1.5x rent because they came in right below credit qualifier. 

    0Reply
  • Jim Vanhorn
    Investor · Roebling, NJ · Member since 2016 · 55 posts · 39 votes
    7y

    @Cameron Riley 1.5 x rent is the max you can charge in NJ. this is what i charge all applicants. You should check your local laws to see what is allowed in your area.

    1Reply
  • Jim Adrian
    Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
    7y

    Rent price = security deposit = state law (for me)

    0Reply
  • Ken P.
    Rental Property Investor · Northville, MI · Member since 2013 · 263 posts · 183 votes
    7y

    As @Michael Noto mentions above, check your local laws.  In Michigan the largest security deposit is limited to 1.5x monthly rent.  We charge this for renters with no credit history, or for credit right above our minimum acceptance number.

    0Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    7y

    @Cameron Riley,

    check your state law regarding the maximum, as they requirements vary by states.

    We always only collect 1 month security deposit.    If you're nervous about the tenant, put them on a M2M, and increase the late fee (up to the maximum per your state laws).       I would never accept someone I had a feeling was bad, or direct proof in their recent history they were bad-- because of more security deposit.   

    If someone comes at you offering to pay 2-3x rent in deposit, it's likely because they don't want you to see something on their record-- red flag alert!

    1Reply
  • Cameron Riley
    OP
    Rental Property Investor · Phila, PA · Member since 2018 · 553 posts · 118 votes
    7y

    @Nathan G.

    Man oh man! You got a nice deal on that one!

    6 month advance!!!

    0Reply
  • Cameron Riley
    OP
    Rental Property Investor · Phila, PA · Member since 2018 · 553 posts · 118 votes
    7y

    @Jim Vanhorn

    So if rent is 500.00

    You can legally only charge up to 1,500

    0Reply
  • Cameron Riley
    OP
    Rental Property Investor · Phila, PA · Member since 2018 · 553 posts · 118 votes
    7y

    @Jim Adrian wow

    0Reply
  • Cameron Riley
    OP
    Rental Property Investor · Phila, PA · Member since 2018 · 553 posts · 118 votes
    7y

    @Linda S.

    Had a guy pay me 3k to move in.. didn’t check his background well.

    Was a fleeing felon. Lol. I learned a big lesson.

    4Reply
  • Cameron Riley
    OP
    Rental Property Investor · Phila, PA · Member since 2018 · 553 posts · 118 votes
    7y

    @Linda S.

    Where do you find all this information regarding fees? Maximum late fees?

    Never ever heard of such a thing.

    0Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    7y

    @Cameron Riley

    My state laws says 2x is max, and $20 a day up to $100 a month for late fees. If I need to charge the 2x damage deposit, they don’t qualify and I don’t rent to them.

    0Reply
  • Jim Vanhorn
    Investor · Roebling, NJ · Member since 2016 · 55 posts · 39 votes
    7y
    Originally posted by @Cameron Riley:

    @Jim Vanhorn

    So if rent is 500.00

    You can legally only charge up to 1,500

     the security deposit legally can be up to 1.5x the rent. so if the rent is $500 then the security deposit cannot be over $750. this is in NJ. your state may be different. probably is as NJ is very tenant friendly.

    I get full allowable security deposit and first months rent before lease signing and transfer of keys. so in this example i would receive.

    $750 security deposit

    $500 first months rent

    google search your states landlord tenant laws to find what the max is for you.

    0Reply
  • Anthony LunaBusiness Member
    Property Manager · Los Angeles, CA · Member since 2018 · 4 posts · 6 votes
    7y

    We typically charge the equivalent of 1x the rent amount, but in CA are allowed to go as high as 2x the rent amount. When there is a pet involved we will typically go to the full 2x.

    0Reply
  • Jorge Roman
    Member since 2019 · 74 posts · 12 votes
    7y

    Well as a renter I had a landlord try to illegally take

    First month

    Last Month

    Full months rent deposit

    $1000 per pet (had 2 cats and a dog)

    so they tried to get about 13-14 grand just to move in.

    We all had great credit soooooo we literally laughed in his face before viewing the home and walked out. 

    For reference, I was in Seattle.

    0Reply
  • Kurt Brauner
    Real Estate Broker · Las Vegas, NV · Member since 2017 · 70 posts · 65 votes
    7y

    In Nevada the maximum deposit allowed by law is 3x monthly rent. I have in fact charged  the maximum once which turned out to be a great move as the tenant defaulted in month 2 of the lease. After all fee charged we broke even on the property (after repairs and cleaning). Lesson learned in given leeway to a tenant with multiple eviction history who was a family friend. 

    0Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    7y

    Many Chicago landlords are opting not to charge any security deposit.  Sounds crazy, but the compliance laws are very difficult.  If there is ever an eviction, and you trip up on a security deposit provision, it creates trouble.  So non refundable move in fees are charged.

    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    7y

    Accidental, but got 3x rent once from the VA a few years ago. The VA was in crises mode with medical appt back-ups and wanted to throw money at placing homeless Vets.

    I don't need all that, I said. Please take it. You'll be doing me a favor said the VA rep. 2x was for me to keep, 1x for the Vet to earn back at move-out.

    0Reply
  • Federico Gutierrez
    Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
    7y

    1.5x Rent. BUT check your local laws what happens IF you charge higher

    0Reply
  • Cameron Riley
    OP
    Rental Property Investor · Phila, PA · Member since 2018 · 553 posts · 118 votes
    7y

    @Brian Ploszay

    Speak more in depth on this...

    What’s the true benefit of denying a security deposit?

    They just simply change it to “ non refundable move in fee ? “

    0Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    7y

    @Cameron Riley   Security deposit law is difficult to comply.  If you don't comply and the tenant is evicted, it can hold up the case and double the security deposit can be collected as a fine.  It's a harassment.  So many landlords are just charging move in fees.   A move in fee means there is no refundable deposit.  All of this is pertinent just to my region.

    0Reply
  • Joe Lantrip
    Saint Charles, MO · Member since 2017 · 16 posts · 3 votes
    7y

    @Brian Ploszay  ANOTHER Reason I will Never Buy in the Socialist state of IL...

    1Reply
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