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Chatsworth – Property Management – Security Deposits

PROPERTY MANAGEMENT CHATSWORTH

Processing Security Deposits

You’ve done your homework. The condition of every unit or home you rent is carefully documented, with pictures to support your findings. The tenant lease clearly states what your tenant is responsible for, and they have read and agreed to the responsibilities listed. Your tenant signed off on the list, and any subsequent problems found during the walk-through were addressed and noted on both copies of the move-in sheet.

But now, that same tenant has given you a thirty day notice to vacate. And you must process his/her security deposit according to state law. If you’re unsure about the requirements for your state, go to http://www.landlord.com/security-deposit-law-guide.htm. This site lists the security deposit requirements for every state, and provides links to additional publications.

If possible, schedule a time when you and your tenant can do the walk-through together. This will give you the opportunity to answer any questions and possibly ward off any potential disputes before they happen.

Unfortunately, tenant move-outs may be placed on the back burner, particularly if the focus is on leasing. With limited time, property managers may rush through the move-out process. While maintaining proper occupancy levels is vital for property managers, ignoring the importance of a move-out can result in lost revenue and possible lawsuits.

So what are the most common errors committed during move-out and security deposit processing?

Slow or delayed processing of move-outs and security deposit refunds. Delayed processing can result in additional penalties if the refund is later than state statutes require.
Lack of documentation when part or all of a security deposit is used. There really is no excuse for this one. Remember that detailed list you made when your tenant moved in? Now is the time to use it in order to document the repairs that you made. Simply deducting $200.00 for ‘miscellaneous cleaning’ is not going to be sufficient. Be as detailed as you possibly can.
Sending a check with a partial refund without any documentation at all. Most state laws prohibit property managers from keeping any portion of a security deposit without sufficient documentation stating why a portion of the deposit was used.
Not sending a check at all. This is actually the worse offense of all. Even if your tenant left the apartment in appalling condition, you must send them an itemized statement showing how their security deposit was used. Not doing so violates most state statutes and you may be forced to return their entire deposit, while footing the bill for the damages.

It’s vital that all owners, property management and pertinent staff are aware of the security deposit processing laws of your state, or any state that you do business in, and process security deposits timely and properly.

Mary Girsch-Bock

Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.

The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.