Our landlord advice today is: Five tips for staying out of trouble with security deposits. You don’t want to violate security deposit law or find yourself in court because you made a mistake in the collecting, holding, or dispersing of the tenant’s deposit.
Know Your State Limits
Each state varies a little bit, and our services are in both Kansas and Missouri. In Missouri, you can charge up to two months of rent as a security deposit. In Kansas, it’s one month of rent, unless your renters have pets or the unit is furnished. So, know your state limits.
Charge the Same Amount
You need to charge the same security deposit amount, regardless of the number of people who are living in the property. It may be tempting to charge more when you have 10 people in the house. But, you must charge the same amount even if you’re expecting more wear and tear on your house with extra children and tenants.
Damage vs. Wear and Tear
Only use the security deposit for damage beyond normal wear and tear. If you Google this term, you’ll find about 100 different definitions. If you’re in doubt about whether something is damage or wear and tear, you should probably just let it go. The courts seem favorable to the renters right now, so err on the side of caution.
Know Your State Laws
Understand the time requirements involved in getting the security deposit returned to your tenant. Most states have a window of 30 days, but in some states, it’s 14 days, and some states you have to inform the tenants about the damages you’re charging for after a certain number of days. Just know what your law requires, because there will always be penalties for violating those time limits, even by just one day.
Keeping the Deposit
Don’t just keep the deposit if the renters break the lease. Investors try to do that all the time; it will get you in a lot of trouble with the courts. If tenants owe rent or late fees, or there are damages, you can pull from the deposit. But, you can’t just decide to keep the whole deposit.
These are five things that Overland Park landlords need to keep in mind when it comes to security deposits. If you have any questions about this topic, or anything pertaining to property management in Kansas City, please contact us at Home Rental Services.