5 Reasons You Should Collect a Security Deposit When Renting Your Home

security deposit

As a property manager, you take great care to ensure that your units are in excellent condition.

Unfortunately, not all of your tenants will do the same.

This is why it’s essential that you collect a security deposit.

But what else can rental deposit help you with — and prevent you from having to pay for?

Read on in order to find out.

1. If a Tenant Damages the Unit

The most important reason why you should collect an apartment security deposit?

Because unruly, careless, or destructive tenants may damage the unit so that serious repairs are needed.

These damages may be accidental, or they may be intentional — like when a tenant pants a room or installs carpeting even though it wasn’t allowed by the lease.

They need to be held financially responsible for their actions. You’ll need to ensure though, that this is less than “normal wear and tear” and more serious damage.

2. If the Unit Must Be Seriously Cleaned

Even if no damages were done to the structure or the appliances within the apartment?

Collecting a security deposit ensures that, should the apartment be excessively dirty, you’ll be able to pay for the cleaning services required.

This is common if the tenant had a pet or a young child, or if the unit was furnished and furniture must be specially cleaned.

3. If a Tenant Does Not Pay Rent

Unfortunately, some tenants will just decide that they no longer want to pay rent. They may also not have the money to make rent.

As a landlord, you know that the eviction process is seldom as straightforward as it seems.

It can be tough to get these people out of your property, even if they don’t pay rent.

This is where collecting a rental deposit can be your saving financial grace.

4. If a Tenant Breaks a Lease Early

If a tenant decides to move out earlier than they’d originally intended, then you can use the money collected in the security deposit to keep you financially afloat while you find a new tenant.

The tenant may let you know they are moving out early, or they may just move out without letting you know and stop paying rent.

In this case, you may need to take legal action. The money from the security deposit can help with those fees, as well.

5. If Utilities Aren’t Paid Up

Sometimes, a tenant will attempt to leave the premises without paying their utility and electric bills.

In this case, you can use the money from the security deposit to ensure that you don’t get stuck paying them.

Collecting a Security Deposit Is the Right Move

As you can see from this post, there are countless reasons why you need to collect a security deposit from tenants.

Of course, that’s far from the only thing you need to know about becoming a property manager.

Be sure to keep checking back with our site for more ways on how to treat your tenants and to protect yourself legally and financially at the same time.