Taking a security deposit is a great way to be sure that you will have funds to help fix any damages that a resident may leave behind. If the situation turns ugly and they destroy the apartment, you can be left with thousands of dollars worth of damage. Collecting a security deposit before they move in will help them to remember that they will be charged for damages and also will give you the peace of mind that you have money to fix anything that goes wrong.

Understand The Rules In Your State

Every state has different rules about security deposits. Some let you require two month’s rent. Some require that you keep a separate bank account strictly for security deposits to avoid commingling funds. Some states allow you to use the security deposit to collect everything including unpaid utility bills. Some only allow you to use the deposit to cover damages in the apartment. Whatever the rules and regulations that are set up by your state, know them and be prepared to follow them.

Document All Damages

Be sure to take photos of all the damages that happen. You will want to have documentation on hand if anything further arises. Taking photos with a date and time stamp will ensure that you have proof of the situation that you can use. Put these photos in a file folder along with any unpaid bills and keep it for quite a while after the resident moves out. A problem may not arise immediately, and you’ll want to have these documents on file for when they do.

Prepare A List Of All Damages

Make a list of all the damages and how you had to repair them. Save all receipts for services and products purchased to fix the damages. Then you will be able to prove exactly what you used the security deposit to pay for and not just that you took it. Be sure to record every last detail in order to keep things on the record. Having a final walkthrough with the resident can sometimes help to relieve some of this stress. Both of you can see exactly what needs to be fixed in the apartment and it will get rid of any surprises that may be lurking.

If you have questions about the rules of security deposits in your state, Occupancy Solutions can provide you with accurate information. We have a lot of resources available for property managers just like you and we’d be happy to lend a hand. Contact us today to get started.