When a property owner allows a tenant to occupy space in his rental property then he charge rent from them. He makes a rental agreement that works for both the tenant and landlord and includes all the terms and conditions and rules to be followed by both. Apart from signing the lease agreement the tenant also has to pay advance money as a security deposit. A security deposit is the sum, that a tenant agrees to pay to the landlord before moving in to the rental unit. Usually it is based on the monthly rent.
What is the Purpose of Security Deposit?
The purpose of the security deposit as a landlord is that you are entrusting your investment property to the care of tenants and it is possible that many things can or do go wrong. Security deposits helps you for severe damages to your property, excessive wear and tear, unpaid rents and other problems. you may better know, What Is Security Deposit and How A Landlord Can Keep It?
If you were not collecting security deposits from tenants then you should start collecting it. It is refundable, so you need to not worry about that you are charging something extra from your tenant. Collecting security deposit has so many benefits for you like:
Tenants More Careful
When tenant pays you security deposit then they become extra careful. They then, take care of your property like their own as if they will make any damages then they will not get the full amount of security deposit.
Safeguard against Damages
When your tenants become careful then you don’t suffer any damages. You can actually save your property from damages by the deducting the damage cost from the security deposit hence it is a safeguard against damages and you will not suffer any loss. Tenants will not try not to make any damages even by mistake and will take care of the property.
Safeguard against Non-payment
Sometimes tenants fails to pay the rent on due date and some willing do it. You can use the security deposit as monthly rent and evict the tenants for not paying the rent on time.
You must include the security deposit in the lease agreement along with the terms and conditions that when and why you can keep the security deposit.
So, above are the benefits of collecting security deposit from your tenants and this is why you should collect it from them. If you are thinking that you are unable to handle all these or not well aware of the use of it then you can hire property management company in Baltimore that can assist you to manage your property and collecting and keeping the security deposit.