Tips Every Residential Landlord Should Know About Security Deposits

As a Houston real estate agent, one of the most common questions I get asked is about security deposits. Many landlords are unclear on their responsibilities when it comes to security deposits, and tenants often don't understand their rights. In this blog post, we will discuss five tips that every residential landlord should know about security deposits. Following these tips will help you avoid costly legal battles and ensure that you are in compliance with your city's ordinances.

Did you know that security deposits are the tenant's money, not the landlord's? This is a common misconception that can lead to disputes between landlords and tenants. The tenant is simply allowing the landlord to hold onto their deposit during the tenancy. Landlords should never commingle security deposit funds with other money not designated as a security deposit.

Another important tip for landlords is to keep thorough records of all correspondence with the tenant. This includes any communications about damages, repairs, or cleanliness. Taking photos of each room before move-in can also be helpful in documenting the condition of the rental unit. Adding in a  pre move in checklist from your tenants as a requirement to be filled out during the 1st week of their move in is also a great idea. 

It is also crucial for landlords to know their city ordinances regarding security deposits. For example, Houston requires that landlords return security deposits within 30 days of the tenant's move-out date. Landlords who fail to comply with Houston's security deposit ordinance can be fined up to $500.

Finally, landlords should keep in mind that they are required to provide written notice to the tenant if they intend to keep any portion of the security deposit. This written notice must be sent within 30 days of the tenant's move-out date and should itemize all damages for which the landlord is withholding funds.

By following these tips, you can avoid many of the common problems associated with security deposits. If you have any further questions about your rights and responsibilities as a landlord, please don't hesitate to contact me. I would be happy to help!