What Are The Benefits Of Collecting A Security Deposit?

jeremy raglin Portland Rental News and Tips April 29, 2022 | 0

Sadly, during their day-to-day operations, some owners may let one or more of their tenants move in without collecting a security deposit, or the first month’s rent, since more than 40% of landlords nationwide manage their properties themselves.

Security deposits are an important part of every landlord’s business and they shouldn’t think twice about requiring a security deposit especially since they offer landlords these benefits.

Benefit #1 – The Security Deposit Provides Money For Repairs

The longer a rental property is owned, there’s a strong chance that the landlord will eventually rent to someone who will leave the property in a state of disrepair.

Thankfully, the security deposit can be used to cover those repairs so that the landlord can get the property in rent-ready condition for the next tenant.

Benefit #2 – Protection Against Early Termination

Another common thing that landlords must be prepared for is a tenant who chooses to terminate their lease early due to a variety of reasons.

Landlords are within their right to use the tenant’s security deposit to offset the cost of the tenant’s early termination and possibly convenience the tenant to stay until the end of their rental contract.

Benefit #3 – Cleaning Fees

If a tenant leaves the Oregon property needing to be cleaned after moving out, the security deposit can be used to clean the rental and get it in move-in-ready condition.

Last of all, but most important, landlords must remember that security deposits are a sign of ‘good faith’ between the tenant and landlord.

Paying the deposit effectively gives tenants skin in the game’ and they know that if they want their security deposit back, they must be prepared to clean the property and leave it in move-in ready condition once they move out.