Do you really require the first, last month's rent + the deposit?

[Blake Jones]

I'm a new landlord. I have a 3 br/2 bath rental that'll go for about $900 per month. I'm wanting to know from more experienced landlords/managers do you require people to give first and last month's rent plus deposit. That seems like a lot for people to come up with. How do experienced landlords and property managers handle this? Do you require all three and if so do you let them make payments on some of it or do that have to pay all 3 at once (in my case $2,700) prior to moving in. Thank you!

[John Underwood]

Sometimes I do. Sometimes I require a deposit equal to 1.5X the rent. Rarely do I just charge one months rent as a deposit.

I base this on background check and credit score.

I have found that if the deposit is more than one months rent that more tenants will actually pay the last months rent, clean the house and turn over the keys with the house in rent-able condition.

If the rent equals one months rent then they will sometimes not pay the last months rent and tell you to keep the deposit to cover the last months rent. This gives you no money for to cover any damage beyond normal wear and tear.

If they stop paying rent in the middle of the lease the larger deposit gives you a bigger buffer.

I tell them if they have good credit then the deposit is only one months rent. They usually say my credit is not perfect or not good so they are then conditioned to pay a higher deposit due to their credit.