HOW TO Charge Double Security Deposit
Need Help!! I have applicants on one of my rentals in DE who are "criteria challenged" ; I have decided to accept them with a double security deposit.
-- In reviewing the DE L/T Law I see I cannot "charge more than 1 mo. sec dep if the lease is 12 mo. or more" However, "If the agreement is for an undetermined time, or on a mo. to mo. basis, the landlord can charge more." So.... do I make their lease for 11 months, 15 days?
Additionally, I have been writing into my leases the terms for an automatic renewal for an additional 12 months. How is that perceived in this case?
My intent is to offer the return of 1 sec. dep after 12 mo. good payment. Plus I pay Md. required interest. (No interest required in DE)
Suggestions?
Ahhh, great idea. I never do that and have only had 1 jerk think it was ok not to pay the last month. Left the place a mess, too...
Where do you put that on the lease?
I agree with charging first/last/security. You would need to write it into your lease. The lease we use includes all payments due in the first paragraph. Additionally, we have a separate section for the security deposit.
I think it depends on your state and local laws. In non-rent controlled CA, the MOST you can charge as a deposit for a unfurnished unit without water filled furniture is 2 times monthly rent. If I call part of it last months rent, then the most I can collect up front for a security deposit is 1 times rent and it restricts my ability to deduct for damage caused by tenants.
Hi,
Instead of trying to find creative ways to bend the law, I would recommend finding another tenant.
Must courts are NOT stupid and will nail you to the wall if you charge more then the legal deposit allowed...or hold back deposit after the tenant leaves.
Life is too short to deal with crappy tenants anyway.
Bruce
Thanks everybody; very helpful replies.
** SOMEtimes you just want to cut somebody a break for all of the right reasons. Since I pay 4% interest, my tenants do well with the money I hold for them; I really treat people fairly. I also follow the law of the land.
I have helped a few others this way and it has been good for the tenants I worked with; they want to offer a reason for a landlord to overlook problems from their past. I have enough experience to trust my judgement on approvals.
There is nothing in the law about last month payments and I think it might be done regularly in that area, so I will structure it that way. Thanks, CE