I' m renting out my townhouse and wondering how much should the security deposit be? And the pet deposit?

Question

My home is 1130 sq ft. 3bd 1.5 bath with a yard, it was built in 2000, and is in great shape. So how much should I require the new renters to pay for a security deposit, and a pet deposit? And how much should be refundable? Also the rent is $1150 a month.
Thanks

Thanks I decided on $1150 sec deposit, plus $100 for each pet.

Answer 1

I have a suggestion. This is what I do for my rental units. I require 2 months security deposit but the first months rent is free.

So if your tenants are paying $1150 sec. dep. plus first months rent $1150 that totals $2300.

If you collect $2300 worth of sec. deposit you have a better cushion to protect you from any financially problematic tenants.

Also, for pets, I require an additional 10% deposit PER PET of the monthly rent. I also, charge an additional $25+ PER PET per month just for my tenants having a pet.

Tenants don't mind paying the double security deposit simply because they know they can get it back at the expiration of their lease, or if I choose, I can let them live it out upon the expiration of their lease. Not to mention it's the same amount up front anyway.

Answer 2

Generally, the deposit should be equal to 1 month's rent. In many areas, local housing laws say that would be the maximum amount, although in other areas that is not so and you can ask for higher.

As far as a pet deposit, it should be high enough to take care of the extra wear and tear caused by animals. It should also reflect how much you object to having animals in your property. For instance, if you don't mind that much, make it only $150. However, if it is a great concern of yours, you might demand $400. Myself, I generally fall int he middle. I don't mind that much but I recognize animals do tend to cause more wear on a property and there is generally more cleaning to be dione due to pet odors when the tenant moves out. If the rent is $1150 I would probably require $250 for a pet deposit.

Two things I would suggest, if you have never rented out before, first go to the book store and find a good book on landlording (there are scores of them). There will be lots of information on screening tenants, what to do if a tenant is late, giving notice for inspections of the property and the like that will make your job much easier.

Second, I would pay a couple hundred dollars to have an informational session with a good real estate lawyer. They can inform you about local and state laws of the responsibilities and requirements of landlords and tenants. I have seen many new landlords make some really terrible mistakes when they are new, they use rental contracts that are bad, don't screen tenants, of take some action that makes it almost impossible to evict a problem tenant. As a landlord you have a huge investment and are giving control oft that investment to someone else. You need to know the legalities right from the start. Don't be a landlord who just wants to put a tenant in with an attitude of dealing with the problems when they develop. Also, should there be a problem with the tenant so you need some legal advice, you have a contact with an attorney who can help you with the process.

If you know what is going on at the start it will go easier, you'll have a better relationship with your tenant and you'll save thousands of dollars.

Hope this helps

Answer 3

It's common for security deposits to be a month's rent, but that's not set in stone.

A pet deposit should be a few hundred dollars, maybe more for a large pet that could really do some serious damage.

The security and pet deposits are totally refundable when the tenant moves out if the place is left in good condition - basically whatever condition it was when they moved in less normal wear and tear. Most places, this is mandated by law.

Answer 4

Security deposit should be up to a month's rent, but allow flexibility based on who you are renting out to. Also, you could be creative and write up the lease to say something like initial deposit $200, first six months rent will have $100 deposit added.

Pet deposit should cover potential cost to fix reasonably common damage that can be caused by subject pet. I would limit pets to anything but large dogs since dogs cause exponentially more damage than other pets.

Deposits should not be, and by law in many states, are not intended for you to pad your pockets; they are a sort of insurance to fix damages beyond reasonable wear and tear.

Include a carpet cleaning clause once townhouse is vacated and maybe an annual inspection.

Again, deposits are not supplements to the rent. Try to take the wrong person - like me - to the cleaners and you will suffer.

Answer 5

Some of this will be affected by where the property is located.

Some states, such as CA, limit how much you can require as a deposit and require that all of it be refundable.

Others may allow you to charge whatever the traffic will bear. Even so, local custom will prevail most of the time. In Boston, for example, collecting the first and last month up front plus one month's security is common. However where I currently live in SW MO, one half month's security is standard practice and landlords who ask more often watch their property stand vacant month after month.

If you decide to manage this yourself, consult with a local real estate attorney first. You can get yourself in a legal jam if you don't know what your rights and responsibility as a landlord are.

Better yet, hand day-to-day management over to a property manager. They're experts and will keep you out of legal trouble. On top of that, the first time that a water heater decides to take a dirt nap on Christmas Eve you'll be VERY thankful that you have a property manager to deal with the hassles for you!

Hint: Don't allow pets! I know that this sounds harsh especially if you're an animal lover but pets will do more to trash your place and a string of bad tenants will. And a bad tenant with a house full of pets is a true landlord's nightmare. You may also save money on your Dwelling & Fire insurance policy if you don't allow pets (or smokers) and that can add up to quite a pile of change over time.

Answer 6

My suggestion would be $575 (half of 1 months rent) security deposit, and $250 for a pet deposit. The $575 will cover carpet cleaning, or damage to drywall when they leave (if there is any damage). A walk through should be conducted upon lease termination. The walk through should be done by you first and then by the exiting tenants and yourself together to go over your findings, and to discuss why you are refunding only a portion or none of the deposit. If there is no damage it should be fully refundable upon an tenant exit review. Pet deposit should be refundable only if there are no damages caused by the pet... such as stains in the carpet or scratches in screens, etc.

Answer 7

I like the security deposits to be at least one months rent, but also dependent on what is in the unit. If it has high end appliances or fixtures, I up it.

As for pet deposit, I try and do the cost extra cleaning for carpet (if applicable), and painting of baseboard etc. So usually it is about 300.00

I would make all of refundable, with anything being subtracted from the deposit for damage beyond "normal wear and tear."

Answer 8

the security deposit is usually the amount of rent a month ($1150) and the pet deposit is usually between $25 and $100.

Answer 9

I would ask for 1 months rent for the security deposit. All of it should be refundable if there is no damage. You should not and cannot withhold security deposit with normal wear and tear. I would charge a few hundred dollars for a pet deposit.

Answer 10

We get one months rent as a security deposit (which is fully refundable unless there are damages) and $150 non-refundable pet deposit. We also take a $100 water deposit that is refundable after confirmation that they paid the last water bill (our tenants pay their own water but it is in our name).