As a landlord, you have to be aware of the importance of a security deposit paid by your tenant. You can look at it as an advance for any future possible damages your tenant might do to your apartment.
In general, you can never really know your tenant so collecting a security deposit is like having a safety net. As the landlord you need to play it safe and collect that security deposit.
So think of this security deposit as your way of saying you do trust your tenant, but not entirely and you need an assurance he won’t do any big damages to your property.
The deposit is paid up front by the tenant to be kept in case there is damage. The landlord keeps the money until the contract expires or the tenant moves out.
If you don’t use a security deposit, as a landlord, you of course have the legal action option. But you wouldn’t want to pay an attorney and all the trial fees either.
It is in the best interest of both parties that the tenant and the landlord view the property together to determine its state prior to the tenant moving in. This will be helpful when viewed upon moving out to determine if any damage has occurred that will require fixing. Taking pictures of the before condition of the property can be helpful during this process.
It is also important for you, as the landlord, to know what your state requirements and restrictions are regarding the deposit. There are usually requirements regarding where the deposit must be kept and what must be done with the interest if any money is earned as well as policies regarding refunding of any leftover monies.
Remember that requiring a security deposit will always be to your benefit. To help you know more, read up on your state’s laws about it.
This author has been contributing articles with respect to home rentals for the last seven years. Moreover, this author takes pleasure in writing with respect to New York City real estate, including Chelsea apartments and TriBeCa real estate.