Has anyone used reverse deposits to get tenants to take care of their units?

Question

Kevin Yeats commented on my "Disadvantages of Section 8" rental blog. He asked about providing "reverse deposits" as an incentive for tenants to keep their homes clean and maintained. He suggested giving $200 at the end of a year lease if a home was deemed clean.

Has anyone used these? I haven't. mck

Has anyone used these?  I haven't. mck

Joe Bertolino · Answer

For $200 I can get a great cleaning job from my regular vendor who has all of the proper tools and attention to detail.  Most of my section 8 tenants have a different opinion on what is clean than I or my cleaning service do.  I think you are setting yourself up to have a conflict with your former tenant over a poorly cleaned house while they want the $200 that was promised to them.

Ryan Pyle · Answer

The best way to make sure your tenants keep your unit clean is through proper screening. Visit the house that they currently live in as the last step in your screening process. Whatever that house looks like is what your house will look like.

McKellar Newsom · Answer

Joel Owens So you put a reverse deposit type of incentive into your lease?  How did you word it?  What did you offer?

Kevin Yeats  If you did put something in the lease, I think you would have to be very specific about expectations.

I've been considering adding a 30/month yard clean up for one of my properties.  mck

Joel Owens · Answer

I just haven't seen an incentive like that  be a motivator.

Many of these tenants like to "live lazy" meaning they do the least amount of work possible to exist.

If you said you had a cleaning service come in once a month then they would really be slobs and I think trash the place heavily every month.The cleaning service would do it one or two times and then quit because of how bad it was.

The best you can almost hope for is that they just do normal wear and tear to the unit and nothing out of the ordinary.

Kevin Yeats · Answer

To be clear. McKellar's original message (not posted in this thread) commented on a Section 8 tenant that had painted a wall (basically) black thus making it exceptionally difficult to repaint for the next tenant.  There may have been other damage to the property as well.

Clearly damage (probably defined in the lease) or tenant applied paint or wallpaper and probably other "changes" would yield no payment to the vacating tenant.

My vision with the suggestion was the if the vacating tenant left the property (nearly) "move in ready" then that tenant would be entitled to a small payment.

Nathan Emmert · Answer

Can you write a penalty into your lease?

"Upon quarterly inspections, if property is not maintained in a manner which meets the expectations of the Landlord/Property Manager, Landlord/Property Manager reserves the right to hire an outside cleaning agent and bill the tenant for the expense up to $XXX per quarter"...

McKellar Newsom · Answer

Lynn M.  Interesting concept regarding xmas bonus for taking care of a property throughout the year. mck

McKellar Newsom · Answer

Dave Meyer I was lucky in that the lease renewal was right around the time I was cited by the city.  I just added a 30 monthly cost for yard cleaning, same as I would for lawn mowing.  mck

Lynn McGeein · Answer

I haven't used those, but I have occasionally used a rent credit in my lease where in fall they can send me original receipts for grass seed, weed & feed, mulch, etc., up to $100 (depending on yard size), as part of their rent payment.  I have also sent my good Section 8 tenant, the one who has been there a while and keeps her house up, her December check for her portion of the rent, voided and placed in a Christmas card, wishing her a Happy Holiday and thanking her for being an excellent tenant.  I've done that a few years now, and it hasn't been an issue with Section 8 yet.

Lynn McGeein · Answer

Michael,  I would think that would lead to all sorts of issues with tenants claiming missing items, upset that they are forced to have strangers in their homes once a month, not straightening for the cleaners to actually clean, etc... probably the only ones that wouldn't have an issue with it are the ones that already keep their place clean.

Has anyone used reverse deposits to get tenants to take care of their units?

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