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Chatsworth – Property Management – Security Deposits

PROPERTY MANAGEMENT CHATSWORTH

Security Deposits

Did you know that a recent industry survey determined that 1 in 4 renters do not receive their security deposit back after vacating a rental unit? Though reasons varied, one statistic in the survey clearly stood out – nearly 36 percent of renters claimed that they never received a reason why their deposit was withheld. Their deposit simply wasn’t returned – an act that is illegal in almost every state.

The temptation to forego an explanation can be overwhelming when staring at a completely trashed unit or home. Faced with the task of completing several thousand dollars in repairs before the unit is rentable, property managers may feel that providing the former renters with justification for retaining their security deposit is time-consuming and unnecessary. After all, the tenant knows they trashed the unit. But most states have laws that protect renters from unscrupulous landlords from keeping a deposit without justification; placing the burden of proving that damage occurred directly on the shoulders of the property manager.

Today, most states have very specific laws in place for handling security deposits. While laws vary from state to state, in most cases property managers need to provide former tenants with a statement containing details on how funds from a security deposit are used to repair damages. Managers must also provide this statement to former renters within a defined period of time – usually within 30 days of vacating the unit. It’s also important to note that simply providing former tenants with a brief explanation such as ‘cleaning’ or ‘damages’ is not sufficient – specific damages and repair/replacement cost must be included in the statement. It’s also a good idea to include a copy of the unit walk-through that was completed when the tenant moved in. This will show that any damages being deducted are not for damages that were present at the time of the move-in.

To avoid legal disputes and the very real possibility that you will have to return a security deposit to a tenant despite damages; be sure to do the following:

Complete a thorough unit walk-through with the tenant
If possible, complete a second walk-through with tenant after move out
If damages are found, document them thoroughly and list cost of repair on tenant statement
Be sure that the statement is sent out in the allotted time – usually 30 to 45 days after move-out

Posted by Mary Girsch-Bock in Business

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.

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