Rental deposit question

[rhrice3]

To all of you with experience with rental/lease agreements. We have been leasing a house for almost 2 years to a family. The original agreement asked for the last 2 months rent as deposit, because her ex-husband had messed up some credit,etc. She has been a lovely tenant, and we have all agreed to extend the lease another 2 years. She suggested that those 2 months of last rent would go toward her June and July rent, but my husband and I feel that at least 1 month rent should be kept as a security deposit on the house. I know when we rented a condo before we moved, that was the deal simply as a security deposit and then they took money out to shampoo carpets.

Thanks for your thoughts,

 

ReneeR

[Parrothead]

I agree keep at least one month's rent for the deposit.

[Amira]

Yes, definitely keep one month's rent. As a tenant, I wouldn't expect any landlord to not require one the entire time I was renting.

[DusksAngel]

I've never known a landlord to give the deposit back until after the tenant has moved out.

[vonfirmath]

I've never known a landlord to give the deposit back until after the tenant has moved out.

 

And if you do decide to give 1 month back now keep good records at having done so so that she doesn't expect both months back again when she does move out!

[Annie G]

Agreeing with the others that you should keep one month's rent as deposit. If you choose to release the rest, I would encourage you to send it back to her as a check, not apply it to rent. If she cashes it and sends it back to you to pay rent, that's fine. But you don't ever want to use a deposit as rental payment. Landlords typically say the deposit is 'a month's rent' but they don't mean that the tenant can not pay the rent and use the deposit instead. Because you want to have the deposit to cover anything you need it to cover-damages, etc.

[Jennifer3141]

I've never known a landlord to give the deposit back until after the tenant has moved out.

 

:iagree::iagree:

 

Do not give the desposit back until she's gone.

[Harriet Vane]

I would keep the deposit, or at least a month's worth. It's NOT rent--it's a damage deposit.

 

If you choose to give her back some, give her a check, and have her write you a check for rent. Keeps you records cleaner.

[mytwomonkeys]

we are currently renting a home & our deposit was equal to the first and last month's rent. in my early 20's (the last time i rented before now) it was the same scenario. my roommates & i were always asked to pay a security deposit equal to the first and last month's rent. i would definitely keep at least one month's rent, if not both.

[Annie G]

You need to hold a deposit. You just never know. Maybe they're having financial trouble right now- job loss or who knows what- and asking to use the deposit is a warning sign that they might not be able to afford the place right now.

 

We've had tenants who let toilets and sinks leak and cause major damage but not let us know because we'd go over there to do repairs and find that they had pets we didn't know about. Pets that were peeing on the floor and scratching doors. We've had some tenants who paid on time every month and never called with any complaints. And then when they move (often with no notice, they just leave), we find horrible damage.

 

We've had tenants who had trouble paying every month, tenants who paid on time every time. We've had them leave the place spotless and leave it a shambles. The rent and condition don't always have a correlation. Sometimes it's not a good idea to call the current landlord for a reference because they are so anxious to get rid of a tenant they'll lie and say they're great tenants. Being a landlord is not a very glamorous job.g

 

Holding one month's rent as a deposit seems reasonable- and is customary in most areas.

[Sharon37127]

We have been renters for a while. I agree- no less than the amount of 1 month's rent kept as the security deposit.

[nukeswife]

We've been renters for most of the last 15 years (we move too darn much to own a house) and this is the only time our rent wasn't equal to one months rent. Usually when we moved in we had to pay the deposit (equal to one months rent) and the firsts month rent. This time our current landlord only asked for $1000, which is half of our monthly rent and also didn't require us to give him a pet deposit. I think most of that was because he is military as our we so there is a bit of trust from that.

[TranquilMind]

To all of you with experience with rental/lease agreements. We have been leasing a house for almost 2 years to a family. The original agreement asked for the last 2 months rent as deposit, because her ex-husband had messed up some credit,etc. She has been a lovely tenant, and we have all agreed to extend the lease another 2 years. She suggested that those 2 months of last rent would go toward her June and July rent, but my husband and I feel that at least 1 month rent should be kept as a security deposit on the house. I know when we rented a condo before we moved, that was the deal simply as a security deposit and then they took money out to shampoo carpets.

Thanks for your thoughts,

 

ReneeR

Absolutely keep at least one month as Security Deposit. You need this in case they leave any damage, which might not be visible (plumbing line blockages, etc).

 

You never leave yourself without any money to repair. You should have had a specific Security Deposit, and a last month's rent, if you chose to collect that as well. Your Lease should indicate (and you should reiterate) that under no condition is the Security Deposit to be used for the last month's rent.

 

You need the leverage of holding some money that they want to get back.

[TranquilMind]

You need to hold a deposit. You just never know. Maybe they're having financial trouble right now- job loss or who knows what- and asking to use the deposit is a warning sign that they might not be able to afford the place right now.

 

We've had tenants who let toilets and sinks leak and cause major damage but not let us know because we'd go over there to do repairs and find that they had pets we didn't know about. Pets that were peeing on the floor and scratching doors. We've had some tenants who paid on time every month and never called with any complaints. And then when they move (often with no notice, they just leave), we find horrible damage.

 

We've had tenants who had trouble paying every month, tenants who paid on time every time. We've had them leave the place spotless and leave it a shambles. The rent and condition don't always have a correlation. Sometimes it's not a good idea to call the current landlord for a reference because they are so anxious to get rid of a tenant they'll lie and say they're great tenants. Being a landlord is not a very glamorous job.g

 

Holding one month's rent as a deposit seems reasonable- and is customary in most areas.

Agree with everything Annie said.

 

But don't call or designate it "one month's rent". It is a security deposit, which is a totally separate entity from a month's rent and the two should never be confused.

[Sharilynn29]

I totally agree with what everyone is saying about using the money as a security deposit, but that money shouldn't be used for shampooing the carpets. You should expect normal wear and tear after 4 years of renting. Since it is your property, you should make sure it is ready for the next renter. Not your current renter. Obviously, the security deposit should be used for damage caused that is outside of normal wear and tear.

[Mommyof4ks]

Personally, I would keep the whole amount, because it sounds fishy. Perhaps they are having financial trouble, and you need some money in case they choose not to pay you. When we rented we never asked for our deposit back prior to moving out.

[Mrs Mungo]

You probably need to check your state law. For example, we rented in Hawaii. We paid 2 months rent as a deposit ($7,000). Hawaii state law did not allow the deposit to be used in lieu of rent, and the entire thing had to be returned, minus payment for specific issues (like carpet cleaning).