As a landlord, it's so important to protect your investment property.
Due to their nature, rental units experience a lot more wear and tear. With tenants coming and going, you'll have to work diligently to ensure your rentals stay in good shape. Of course, there's a difference between normal wear and tear and actual property damage.
To combat property damage, many landlords ask for an apartment security deposit. Today, we'll explain a few things about security deposits-how much to collect, when to return them, when to withhold them, etc. If you want to keep your property in great shape, keep reading and you'll see how a security deposit can help.
What Is a Security Deposit?
A security deposit is a sum collected by a landlord before a new tenant moves in. The idea behind it is that it acts as an insurance policy for the landlord in the event that the tenant damages the rental unit.
At the start of the tenancy, the landlord and tenant should do a move-in inspection, making note of any existing damage to the home. The tenant will then pay the security deposit and, when they move out, they'll do a move-out inspection to see if any new damage has appeared during the tenancy.
If there's no new damage, the security deposit is returned in full. When there's new damage, missed rent payments, or other problems that cost the landlord, they can withhold some or all of the security deposit.
How Much Is a Security Deposit?
In Texas, there's no limit on how much a landlord can charge for a security deposit. That said, if you charge thousands of dollars for a security deposit, you're going to scare a lot of qualified renters away.
Typically, landlords will charge the equivalent of one month's rent as a security deposit. Under Texas law, the landlord must return the security deposit within 30 days of the end of the tenancy.
Withholding an Apartment Security Deposit
As a landlord, you can withhold a security deposit for any reason that breaks your lease agreement, but you'll need to provide detailed proof. For instance, if a tenant leaves the rental unit without paying their last month of rent, you can keep the security deposit as insurance.
Where security deposits usually come into play is when there's property damage found during the move-out inspection. It could be a hole in a wall, a damaged appliance, or a broken window.
You have to provide the former tenant with proof of the cost of repairs and return the remaining amount from the security deposit.
How PMI San Antonio Can Help
Collecting an apartment security deposit can bring you peace of mind when you let a new tenant into your rental unit. If you really want to avoid this issue altogether, however, hiring a property manager to run your investment property is the way to go.
At PMI San Antonio, we can minimize the likelihood of property damage with our thorough tenant screening process. We can also handle all tenant issues, including collecting rent and security deposits. Contact us today to learn more about how we can make your life as a landlord easier.
