All Forum Posts by: Kira DAnnunzio

For context, I own a duplex and rent to A-/B+ class. My rent is higher than typical in the area ($1300/month) but had GREAT demand for my property as it was recently renovated and looks much nicer than others. It's a hot young professional town, so I'm not worried about a ton of damage each turnover.

I'm reading Brandon Turner's 'How to Manage Rentals' book and read something interesting.... he described the security deposit as an "incentive to maintain the property". It got me thinking about how tenants completely ignore their security deposit until they move out, so does it really incentivize them for anything?? He also mentions a big reason most people move is because the landlord wasn't responsive/kept security.

So here's what I'm thinking...  please give me your feedback!!!

I'm considering renaming it an "Accountability Deposit" in the lease and conducting quarterly walkthroughs (which I do anyway) but where deductions would be made if necessary. If no damages are found the tenant would get back 1/8 of their deposit (~$160). Should they renew for another term at the end of the year they would make me whole again with a new "AD" and the process would start over. It would incentivize them to stay, almost like a "good tenant reward". If they didn't renew I would still have about 1/2 the deposit for turnover and they may be less likely to dispute the charges since they were given so much back over the year/issues were addressed that they likely forgot about.

Terrible idea? Let me know what you think!!

@Nathan Gesner I like your idea about offering two Early Termination options. I tried to find the form on your website but obviously the information is outdated. Would you be willing to send me a copy of the Agreement you use? Thanks and I love your stuff!

Ah!! Everything happens on the same day!! Unfortunately I can't tonight, but I'm an investor in Manayunk/Roxborough. Own a duplex and live in Rox.

Would love to attend the next meet up!!