A good landlord or property manager is always seeking to collect a security deposit before a tenant moves into a property. This is because the security deposit provides exactly that: security. It’s your insurance that all the terms of the lease will be fulfilled. When you have a security deposit from the tenant, you can be sure that money is available to pay for any damages that may be left behind by the tenants after they move out.
It’s very important that you explain to your tenants that the security deposit is not the equivalent of the last month’s rent. Tenants are always trying to apply that security deposit to their final month in your home, in order to avoid paying rent that last month. You cannot allow them to do that. The security deposit is separate from the rent and it’s meant to cover any damages once the tenants leave.
You can have major problems when you allow tenants to apply that security deposit to their last month’s rent. We always recommend to landlords that they not allow it. You’ll be left without that insurance against any damages or repairs you have to make before a new tenant moves into your property. If a tenant asks you to do this, say a firm no. If they insist, and you find that they don’t pay rent their last month, you should follow all the necessary steps involved in nonpayment of rent.
It might seem strange to pursue an eviction during the last month of a tenant’s residency, but you have to do it in order to get your rent. If the tenant doesn’t pay rent after receiving your notices, file the legal paperwork required for an eviction. The tenants will leave you with no choice but to file a 3 Day Notice to Pay or Quit and then continue with the eviction process. You have to remember: rent is rent and a security deposit is a security deposit. They aren’t meant to cover the same things.
Security deposits can be difficult to wrap your head around, so if you need help or you have any questions, please don’t hesitate to contact us at Cape Shore Property Management. We’d be happy to help you.
