I have had my duplex since 2007. For every tenenant that wants to renew a yearly contract I do not ask for a new deposit.
I've seen on other forums that you are suppose to ask for new deposit money when renewing a contract with the same tenant.
What do the majority of landlords do? Do you ask for a new deposit for renewing a contract?
I still have their deposit from before so I don't ask for another one. This is refundable so it is not extinguished at the end of their current lease.
No, that's not correct. You collect a deposit up front and that's it. If the tenant renews for a year, you still operate with the same deposit you had for the first year.
The only caveat is if you are increasing rent, you may want to increase the deposit to match. But I typically don't even do that because tenants that renew tend to be good renters that produce little risk, so there's less need of a large deposit.
@Jesse Rangel we only collect their initial security deposit upon move in, no additional funds due at renewal time. It is kept in an escrow account until they vacate.