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Updated 10 months ago on . Most recent reply

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Ran Fridman
  • Property Manager
  • Illinois, Indiana & Wisconsin but call center all 50 states
32
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Move-In Fee and Price list for damages

Ran Fridman
  • Property Manager
  • Illinois, Indiana & Wisconsin but call center all 50 states
Posted

Hello Everyone! I am looking for advise .We want to move away from security deposits and charge only Move-In Fee. Besides comprehensive lease agreements outlining the tenant’s property maintenance and damage prevention responsibilities, I am also thinking about signing with a tenant's additional agreement with all prices for typical damages which they need to sign with a lease. Does anyone had experience like this? I would be very grateful if anyone can share with me price list for the typical damages or if you know where to find it. 

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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
Replied

Top of my head:

1) it doesn’t matter what prices you put in your lease, you can only charge them actual costs, I wouldn’t bother. 

2) You’re removing all incentive for the tenant to clean up and take care of the property. (Their desire to get their security deposit back.)

3) How does the tenant see this as anything other than a non-refundable security deposit that doesn’t go towards damages? It appears to just be a LARGE application fee?

4) Have you checked to see if this is legal? I’m sure there are many cities where it wouldn’t be. 

5) if it’s not an outright cash grab as it appears. What’s the purpose?

6) I’ve actually seen more landlords going the other way. Reducing the cash required to move in by employing services that guarantee the security deposit for a monthly fee. They then cover any damage lack of rent payment. This attracts more tenants rather than drive them away while their previous landlord is still holding eir security deposit. 

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