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Landlord Tips for Dealing with Security Deposits

Are you a first time landlord or are you not able to keep up with the constant changes in legislation? The first important task that needs to be completed is collecting the security deposit from the tenant. It is vital that this is done before they move into the property.

Any delay on the part of the tenant should signal warning alarms. Letting them move into the property before they have made this payment could make life very difficult for you in the future as you will have no ‘insurance’ should something go wrong.

The amount of the deposit should be equal to one and a half months rent, and along with the first month’s rent should be collected in advance. Please make sure that the funds are cleared before handing over any keys or granting the tenants access to the property. Make sure you give the tenants an itemised receipt for future reference and keep a copy for yourself.

 

Asking for one month’s rent up front and a deposit is perfectly standard so don’t fail to act, and don’t let the tenant try and change or delay this process.

This security deposit will be an assurance that any damage will be paid for. It will be your responsibility as a landlord or a letting agent to keep the money until the contract ends or the tenant moves out of the property.

A deposit could be a lifesaver should something go wrong down the line. Securing a deposit is like having a safety net. This helps protect yourself, your property and your tenant as well.

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