Do You Keep The Security Deposit?
I read a passage in the Millionaire Real Estate Investor which stated that some property owners keep security deposits (if I remember correctly to maximize the cash flow) and yes it is written into the lease agreement. I also ran across a landlord who also does this. Is this really practiced?
sounds like an easy way to have a trashed unit at the end of the lease.
Some states have strict rules governing security deposits in your landlord tenant laws. Before stipulating in your lease that the security deposit is forfeited, best to check with your attorney to see what your liability could be if some tenant decides to sue for return of security deposit.
I have heard of charging mandatory fees (written into a lease). For example: Carpet cleaning fee, etc. Do not call it a deposit if it is not a deposit.
If this is what you had in mind, I would do both. I would charge mandatory fees and a damage deposit that you intend to refund.
I have an idea....
If you cannot make money without keeping the security deposit maybe you should raise the rent.
Hummm, would that even work?
Come on people, start treating this business like the professional business it is and you will be successful.
If you’re struggling to make money to the point that you have to resort to unethical or immoral acts, not to mention illegal, to get by than you need to step back reevaluate your business model.
But what do I know
_________________
Michael Quarles
"Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 12/28/2005 ]
I really enjoy this site but it seems like many of you take posts waaaaaaaaaaaaaaaaaaay to personal to the point that if I was a weak person I would be in tears. The topic was a statement in a book that I inquired about and if I remember correctly my last question possessed the words "is this really practiced".
Noone is stooping to illegal levels and if we were not treating this as a business none of us would make a profit. We are just conveying the pros and cons of the initial statement. C-H-I-L-L with the sarcasm.
5) never trade rent for work.
6) get a separate pet deposit.
Welcome to our world, bobster!
Jim
7) Never Allow Pets
8. Linoleum tile or ceramic tile is much better in the long run than carpet (and about the same cost to install).
Hang in there I hope it gets better !
- Waylon
[ Edited by Waylon on Date 12/28/2005 ]