L/O Property Damage ?. How Much....
Hey board,
On a L/O, the seller/lessee wants an agreement stating a specific amount of $ will be set aside for damages to the property by my tenant....I've negotiated an appraised house of $194k down to $178k.
The payoff bal. is $169.5k. Payable $4250 at new tenant lease inception and the bal. when they excercise their option.
I'll be asking for $8k down....(Gotta get something!)....
Ok, how much do I say/set aside for damages incurred by my tenant (if any)?
and...how should the agreement be constructed?
also: how do I get this $?
I'm thinking stating no more than $2500. in non-wear-n-tear property (damage to carpeting, walls etc.) and only $100. in wear-n-tear property.
Any advice would welcome.
Thanks,
Clif 
What you're asking for is a security deposit, so how much does that usually run in your area for rentals?
Here, it is usually equal to one month's rent. ($1000/mo = $1000/sec dep) Keep in mind that a security deposit IS Refundable (if no damage) and must usually be kept in a separate account until the lease is terminated. You'll have to check your local landlord/tenant laws on exactly how the security should be handled.
I think that it will cut into your down because it would be difficult for someone to come up with 1-3% + more $$$ for a security deposit.
Roger