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When landlords require tenants to pay a security deposit, it’s often to help cover property damage caused by the tenant or unpaid rent. But security deposits can be quite expensive for tenants and need to be collected following strict guidelines. For that reason, security deposit insurance may be an option that could benefit both landlords and their tenants more than traditional security deposits.
In this article, we outline everything landlords and tenants need to know about security deposit insurance.
What Is Security Deposit Insurance?
Security deposit insurance, also considered a rental surety bond, helps cover unexpected costs during the lease term, such as property damage and unpaid rental fees. Instead of requiring tenants to pay a security deposit fee upfront, they can pay a monthly premium or the policy in full and work with the insurance provider to cover outstanding costs.
To get compensated for certain costs, the landlord will need to file a claim with the insurance provider if the tenant could not resolve the issue themselves. The company would then compensate the landlord for any costs they deem valid and bill the tenant based on the charges they covered.
What Are the Pros and Cons of Security Deposit Insurance for Landlords?
Security deposits can help protect landlords, but collecting and managing security deposits can be tricky. Landlords should know the pros and cons of security deposit insurance before advising tenants to purchase a policy.
Pros
- Can cover property damage and unpaid rent: When a tenant experiences sudden financial issues, security deposit insurance can ensure the landlord still receives rent and other monthly fees.
- Can file a claim before the tenant moves out: With traditional security deposits, the landlord cannot deduct any costs from the deposit until the tenant has moved out and a rental property walk–through checklist has been completed. But with security deposit insurance, landlords can submit a claim during the lease term to avoid hiccups.
- Eliminates the need to collect security deposits: Opting for security deposit insurance can remove the need to collect security deposits from tenants and, in some cases, deposit the funds in an interest-bearing account.
Cons
- The company evaluates each claim: There’s a chance a landlord’s claims will be rejected by the company, making it harder to get the required funds to cover back paid rent or property damage repairs.
What Are the Pros and Cons of Security Deposit Insurance for Tenants?
Security deposit insurance is a great option for tenants who avoid paying a security deposit fee upfront. But there are also pros and cons tenants need to be aware of.
Pros
- Less costly than a security deposit fee: Security deposit insurance premiums range from $10 to $50/per month, which is more affordable than upfront security deposits that are often equivalent to one month’s rent.
- The insurance provider makes the decisions: Instead of the landlord deciding what fees the tenant needs to cover, the insurance provider makes the final decision when a claim is submitted. This ensures you’re only responsible for reasonable fees and not paying for costs that are the landlord’s responsibility.
Cons
- Not all providers are reliable: Providers can vary in their customer service and response time when reviewing claims, so it’s important to find an insurance provider that’s reputable and highly rated.
- Premiums can become expensive long-term: Although security deposit insurance premiums are typically low in cost, the premium can total to be more than a traditional security deposit if you decide to rent a property for more than 12 months. Security deposit insurance may make more sense when planning on staying at a rental for no more than a year.
Collect Security Deposits With Avail
While security deposits are one way to ensure the landlord and tenant are protected during the lease term, opting for security deposit insurance can be a great alternative. However, if you still prefer to collect move-in fees to offset the costs of rental property-related maintenance, then Avail can help streamline the rental fee collection process in minutes.
Create an account to collect rent and monthly fees, schedule upcoming payments, automate rent reminders, and more.
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Collecting security deposits may seem like a simple process, but there are various rules and regulations that landlords need to abide by to avoid breaking local landlord-tenant laws. One requirement is providing tenants with a security deposit receipt that outlines the total amount deposited into the bank, the location of the bank, which property the payment was for, the date, and your information as the landlord.
You can create a security deposit receipt or use a property management software platform to automatically provide receipts for each collected payment, depending on your preference. Keep reading to learn what to include in a security deposit receipt, how much you can charge for security deposits, and where to get a free security deposit receipt template.
What Is a Security Deposit Receipt?
A security deposit receipt is a document that confirms the landlord has received the security deposit and provides details on the bank it’s held at. Depending on your state, you’ll need to provide tenants with a security deposit receipt within a certain timeframe so they’re informed on where their payment is held.
Failing to provide a security deposit receipt within the required timeframe results in a penalty, such as having to return the full amount of the payment once the tenant moves out. However, the penalties for failing to provide a security deposit receipt vary by state, so check with local ordinances to learn what those are for your state.
How Much Should a Landlord Charge for a Security Deposit?
A security deposit fee can be as much as one to three months’ rent, but states vary in exactly how much a landlord can charge for a security deposit fee, especially for military personnel or fully-furnished rental properties. It may also be helpful to research how much other landlords are charging in security deposit fees to avoid charging too much, which can deter tenants from applying.
What to Include in a Receipt for a Security Deposit
Receipts for security deposits should generally include the tenant’s name, the location of the bank holding the security deposit, the account number (if legally required), the amount deposited, the date, your name, and your signature.
Here’s an example of a security deposit template to give you a better idea:
“Date:
Name(s):
For Address:
Dear [TENANT NAME],
Your security deposit payment is held in the following bank account: [BANK NAME] located at [ BANK ADDRESS]. Here is information on the payment.
- Date the payment was deposited:
- Deposit amount:
- Bank name:
- Account number:
- Payment for: Security deposit
The security deposit payment will remain in the bank listed above for the full duration of the lease agreement for the rental property located at [RENTAL PROPERTY ADDRESS].
If you have any questions, please let me know.
Best,
[YOUR SIGNATURE]”
How Is a Security Deposit Returned?
Once the tenant moves out of the rental property, landlords should provide a security deposit return letter to let them know how much of their payment will be returned and an itemized list of deducted costs (if applicable). Tenants should receive the security deposit return letter within a certain frame dictated by local landlord-tenant laws.
Collect Rental Fees With Avail
There are different legal requirements landlords must abide by when collecting and managing security deposits. With Avail, tenants will automatically receive payment confirmations and receipts for all submitted payments, removing the need to manually provide tenants with security deposit receipts. Easily collect rent payments, move-in fees, security deposits, pet fees, and more for multiple rentals, all in one platform.
Create an account or log in to collect rental payments with landlord software designed to make renting easier.
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Landlords are responsible for determining what fees tenants will pay to help cover the costs of maintenance, repairs, and other expenses associated with their rental — often in the form of a move-in fee.
Move-in fees are similar to rental security deposits, but they need to be handled differently by both landlords and their tenants. We outline everything you need to know about move-in fees, from how much they cost to limitations landlords should be aware of.
What Is a Move-In Fee?
A move-in fee is a non-refundable fee imposed by a landlord that a tenant pays before moving in. The fee helps cover certain expenses associated with managing the rental property, such as covering repairs or changing the locks on the doors.
Unlike security deposits, there are fewer laws landlords need to abide by when handling move-in fees. Non-refundable fees do not need to be kept in an interest-bearing account or returned once the tenant moves out, making them easier for the landlord to manage.
How Much Does a Move-In Fee Cost?
Move-in fee costs can be anywhere from 20% to 50% of one month’s rent price, depending on where the rental property is located. Some states do restrict how much landlords can charge in move-in fees, so it’s important to reference your local landlord-tenant laws to ensure a landlord is not overcharging.
The Difference Between a Move-In Fee and Security Deposit
A security deposit is a sum of money that is often refunded at the end of the lease term, unless a portion needs to be used to repair property damage caused by the tenant. Some local ordinances require landlords to provide a security deposit receipt at the start of the lease term, displaying where the fee is being stored and for which rental property it was collected. Once it’s time to return a tenant’s security deposit, the landlord will also need to provide a security deposit return letter outlining how much of the deposit is being returned and what’s been deducted from it.
Move-in fees are usually non-refundable, meaning landlords do not have to provide proof of where the fee is being stored or return any portion once the tenant has moved out. Move-in fees also typically cost less than security deposits, since some states place restrictions on the total cost landlords can charge tenants.
Can Landlords Impose a Move-In Fee and a Security Deposit?
There are no laws prohibiting landlords from imposing both a move-in fee and security deposit. However, charging both fees can deter tenants from applying for your rental, since this can cause financial strain.
Most landlords prefer charging move-in fees due to fewer regulations regarding how to handle them. But landlords can charge either a security deposit that is returned at the end of the lease term or a one-time fee upon move-in, depending on their preference.
Are Non-Refundable Move-In Fees a Scam?
Although it can seem like non-refundable move-in fees are a scam, that’s often not the case. Move-in fees are intended to help cover maintenance costs that pop up throughout the lease term and other sudden expenses a landlord may incur. Move-in fees reduce the chances of landlords having to cover operating expenses towards their rentals out-of-pocket.
However, move-in fees usually need to fit within a certain price range, so tenants should check local regulations regarding non-refundable fees to ensure they’re not overpaying.
Can Move-In Fees Be Negotiated?
Move-in fees can usually be negotiated as they are often not set in stone by most landlords. If a tenant has discovered that the move-in fee is higher than the limit stated in local landlord-tenant laws or higher than other local rentals, then this can be used to negotiate a lower price.
It’s important to note that not all landlords will be willing to lower the move-in fee, since it’s intended to help cover costs associated with managing the rental.
Collect Rental Fees With Avail
Move-in fees are easier to process than security deposits, but it’s still important for landlords to collect rental fees in a streamlined way. With Avail, landlords can easily collect rent payments, security deposits, pet fees, and move-in fees all in one place.
Instead of having to reference different bank accounts to see what’s been collected, Avail helps you see who currently owes rent, schedule upcoming payments, and more.
Collecting rent with Avail also allows your tenants to report on-time rent payments with CreditBoost* to TransUnion to build their FICO 9, FICO XD, and VantageScore credit scores — a perk that can help you attract more tenants and reduce vacancies. Create an account today to collect rental fees with Avail and invite your tenants to pay rent online.
*CreditBoost results may vary by individual.
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A security deposit return letter outlines how much of a tenant’s security deposit will be returned, any expenses it may have been used on, and where to contact you if they have any questions.
In this article, we share what to include in a security deposit return letter, considerations to be aware of as a landlord, and provide a free security deposit return letter for you to use.
When to Provide a Security Deposit Return Letter
You can provide a security deposit return letter when planning to return the full deposit, keep a portion, or use the total amount to repair damages. Local ordinances also require that either the security deposit fee or a security deposit letter be provided within a certain time frame, so you’ll want to refer to local landlord-tenant laws for more information.
Failure to return the security deposit without an explanation can result in the tenant pursuing legal action. Providing a security deposit return letter can reduce the chances of being sued by a tenant, especially if there’s proof that you did attempt to notify the tenant within the required timeframe.
What to Include In Your Security Deposit Letter
Every security deposit letter should include the following information:
- The name of all tenants that rented out the property: This can be either one person or multiple people if more than one tenant rented out the space.
- Initial security deposit amount: The letter should state the original amount you charged for a security deposit fee.
- The rental property address: The address should be the rental property they resided in during the lease term.
- An itemized list of expenses the security deposit was used for: Various states legally require landlords to provide tenants with an itemized list of expenses the security deposit was used for. It’s important to note that landlords cannot use a tenant’s deposit to cover normal wear and tear damage.
- Copies of repair and cleaning receipts: Although not required, adding copies of the repair and cleaning bills the security deposit was used to cover can help tenants better understand the charges you outlined.
- The remaining balance that will be provided to the tenant (if applicable): Both the total amount you’ve deducted and the remaining balance should be disclosed to the tenant.
Once you’ve finalized your security deposit return letter, you can either email it or send it through mail for your tenant to review.
Important: Landlords cannot use a tenant’s security deposit to repair normal wear and tear.
When Should You Return Security Deposit Interest?
Landlords in certain states are required to store security deposits in an interest-bearing account during the lease term, resulting in landlords having to also return any interest the deposit accrued.
You’re typically expected to return the security deposit interest when returning a tenant’s deposit, but this can vary depending on where your rental is located.
What If My Tenant Didn’t Provide a Forwarding Address?
It’s advised to request a forwarding address from tenants once they’ve decided not to renew the lease agreement. If they have not provided a forwarding address once it’s time to return their security deposit, you can mail it to the tenant’s last known address (your rental property) or reach out to them for their current address.
You can also send the letter via email to retain both physical and electronic records of you sending the letter to your tenant.
Collect Security Deposit Fees With Avail
Handling security deposit fees can be tricky, but Avail works to make the process easier for both landlords and tenants. Avail allows you to keep a record of where the security deposit is stored, when it was received, and when it’s been returned to tenants. You can also collect other rental fees, such as online rent and move-in fees, to streamline the process of managing your rental.
Create an account or log in to begin managing your rental business with landlord software.
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When collecting rental security deposits, all you have to do is set the amount, have tenants provide it prior to moving in, and then store it in a bank account to be used or returned in the future, right? Well, not exactly. There are rules and regulations you’ll need to abide by that impact how much you can collect in a security deposit and how it needs to be stored during the lease term.
To reduce the chances of improperly handling your tenant’s rental security deposits, we outlined these important factors to be aware of as a landlord.
What Is a Security Deposit for Rent?
A security deposit is a sum of money that landlords can request from their tenants prior to moving in. Tenants are usually given back this fee once they’ve moved out, unless they’re behind on rent payments or have caused damage to the property that’s outside of normal wear and tear. In that case, you are able to retain a portion of the deposit fee with a justifiable reason as to why.
Upon receiving the security deposit, you will need to provide your tenants with a security deposit receipt displaying the name and address of the financial institution used to store the fee, the amount that’s been deposited, the recipient, and the address of the rental property.
How to Determine Security Deposit Amounts
Local landlord-tenant laws impact exactly how much you can charge for a security deposit fee. Landlords can charge anywhere from one to three months’ rent for a security deposit, with the price cap varying per state. There are also restrictions on how much military personnel can be charged, as well as different price caps for fully-furnished rental properties.
Another factor to consider is whether or not the security deposit you’ve set is affordable for your designated area. If you already have a higher rent price and require tenants to pay a security deposit worth two months’ rent, then this can deter tenants from submitting an application due to costly fees. To avoid this, you can request a security deposit that equals one month’s rent payment and invest in reliable and thorough rental background checks to find quality tenants that will take care of your property — removing the need to upcharge in security deposit fees.
Purchase an Avail Rent Analysis report to get insights on how much landlords with similar properties are charging in rent near you.
Does a Security Deposit Have to be in an Interest-Bearing Account?
Landlords are usually not required to store security deposits in an interest-bearing account through the duration of the lease term, unless stated otherwise by local ordinances. However, in many states, this fee does need to be kept in a bank account that is not their personal account to avoid “commingling”, which is defined as the act of storing a security deposit in the same account as other rental fees, such as rent and application fees.
If you decide to store the rental security deposit in a neutral location, like an escrow or savings account, then the interest that accrued over time from bank fees will be your responsibility to cover.Platforms like Avail allow landlords to collect rental fees — like rent payments, pet fees, and security deposits — in a way that’s both legally-compliant and secure for both parties. Any bank account you’ll be using to store security deposits can be easily set up to help you keep track of any outstanding or future payments.
Are Security Deposits Refundable?
Landlords are legally required to return a tenant’s security deposit within a certain timeframe, unless it is used to cover unpaid rent or repair property damage. Security deposits cannot be kept without providing tenants an explanation as to what the deposit is used for with an itemized statement. States also vary in how soon a security deposit needs to be returned, so refer to local landlord-tenant laws to learn more.
Landlords can provide a security deposit return letter to tenants to let them know how much of their deposit will be returned, if a portion has been used to cover expenses, and what those expenses were.
What Can a Landlord Deduct From a Security Deposit?
When tenants cause damage to the property that’s outside of normal wear and tear, the landlord is legally allowed to deduct expenses to cover the repairs from the security deposit. Examples of severe damage include:
- Tears, holes, and burn marks on the carpet
- Broken windows
- Excessive holes on the wall from home decor
- Damaged appliances (stove, fridge, dishwasher, etc.)
- Damage caused by pets
If allowed by the state, a landlord can also keep a portion of the security deposit if a tenant is behind on rent payments. Allowing tenants to use their security deposit for rent can reduce the amount they owe until they’re able to improve their financial situation.
However, any deductions from the security deposit must be provided to tenants through an itemized list explaining the reasoning for the deduction and the cost of each expense.
How Long Does a Landlord Have to Return a Security Deposit?
Landlords have anywhere from 14 to 45 days to return both the security deposit fee and any accrued interest to the tenant after they’ve moved out. The time frame varies depending on which state you’re located in, so it’s important to be familiar with your local landlord-tenant laws prior to the end of the lease term.
Withholding a tenant’s security deposit past the allotted time can result in a lawsuit, since it’s illegal to keep a security deposit from a tenant without justifiable reason. If you are planning on withholding part of the security deposit, your tenant will need to be notified as soon as possible.
Collect Security Deposits With Avail
The key to collecting security deposits is being aware of local laws set in place, having a set process to collect and store rental fees, and leveraging landlord software to keep track of all the security deposits your tenants submit. Avail allows you to not only collect rent payments online but also additional fees the tenant will be responsible for covering.
To securely and legally collect security deposit fees from your tenants, create an account on Avail to get started.
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When you have your own place, renovating and decorating on your own accord is relatively easy, considering the only person you have to consult is yourself. But living in an apartment is a different story.
Painting walls, hanging pictures, or changing the overall layout of your apartment are rarely things you can do without consulting your landlord. Not to mention that rules on apartment renovation and decoration may vary from building to building. However, there are still decorating options that will keep your landlord happy while satisfying your inner designer.
1. Utilize Temporary Wall Decorations
One way to change your apartment’s appearance is by adding art or pictures to your walls. Depending on your living situation, you may or may not be able to use nails, which is why removable wallpaper or command strips and hooks are the way to go. Either can be found at your local crafts or home-goods store. Plus, these little-to-no damage alternatives mean you can more easily change up your decorations, too.
2. Deck Out Your Floors
Areas that are often overlooked — yet so easy to decorate — are your floors. A quick fix that adds color and texture to your room is a rug. It does not matter if you have hardwood or carpeted floors, or a small or large budget — you can find an area rug in almost any size, price, and style.
A large living room can be tied together with a lush, heavy rug, while a small, plain room can be brightened up and made to feel cozier with a floor tapestry. You can even layer rugs if you can’t decide on a style or color just to add a little more variety to a room.
3. Utilize Mirrors
Mirrors can be used for more than just checking your outfit before you dart out the door. A mirror is a great way to make a small space feel bigger because of the reflectiveness of the glass. Try hanging a few different mirrors around your apartment to amplify your space, and if you cannot hang a mirror, find a standing mirror you love and lean it up against a corner.
4. Look for Double-Duty Furniture
Especially if you are living in a small apartment, storage space can be hard to come by. On top of this, if you can’t hang shelves it can feel like you’ve hit a dead end. A simple solution is to look for furniture that also doubles as storage. This creates extra storage while also introducing some new decor into your apartment.
As you look for different items to fill your apartment with, keep an eye out for coffee tables with hidden storage boxes, couches that fold out, sturdy media consoles, and nightstands that have multiple drawers.
5. Create Another Room
If you’re looking for a little more privacy or could use an extra room in your apartment, you don’t need to do a full remodel. Hanging up curtains is a great way to separate one large space, and if you’re worried about drilling into the wall, a folding screen is a great alternative. Plus, curtains or folding screens are easy ways to make your apartment feel a little more cohesive and sophisticated.
6. Refresh Your Kitchen
When decorating an apartment, many people tend to overlook the kitchen, yet it’s one of the easiest spaces to spruce up. Consider using a removable peel and stick backsplash behind your counters to add a bit of color and texture. Also, see if your landlord is comfortable with changing the cabinet and drawer handles for newer, more aesthetically pleasing ones.
Typically, you can do this with little to no damage. Purchase some colorful dish towels, a hanging fruit basket, or some elegant wooden cutting boards to use as extra decorations as well. When you purchase kitchen appliances and cooking utensils, think about how you can display them, not just how you can use them.
7. Play with Lighting
An often overlooked — and instrumental — facet of any apartment is the lighting. Whether your apartment is well-lit with natural or artificial lighting, you can still plug your personal style into your light fixtures by changing them to something you like.
If you have a lot of windows, think about investing in some curtains, folding blinds, or outlining the edges of the window with some decorative tape for an easy change. If you’re low on natural lighting, standing lamps will add to your apartment’s decor while lighting your room. And if you have pre-installed light fixtures, you can always change the shades on them or the type of bulbs in place, with your landlord’s permission.
Remember that you’ll need to replace any light fixture you change with the original fixture before you move out.
Decorating your rental does not have to be complicated or damaging. There are so many easy, cheap, and creative ways to decorate a space in order to make it your own, and if you’re ever unsure if a decorating decision is alright, check in with your landlord. If you think outside of the box when decorating your apartment, then both you — and your landlord — will be satisfied with the result.
As you decorate your apartment with these landlord-friendly tips, make sure you’re documenting any changes or pre-existing damages and using a checklist to protect your security deposit.
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While almost every renter has been held responsible for cleaning out their apartment before moving, it’s difficult to know what that move-out clean entails. Though some landlords might pay for a professional cleaning service between tenants, this is not always guaranteed, and assuming that your landlord will hire cleaners is a risky move for your security deposit.
But moving out isn’t only about cleaning; it’s about finding and documenting every possible damage that could deduct money from your deposit — a task that all renters should do when they move in and move out.
To help with this, here are some move-out cleaning tips and information on rental damages in order for you to get your security deposit back.
When You Move In
To avoid getting charged for the previous renters’ damages, it is incredibly important to find, document, and inform your landlord of any damages to the property with a move-in inspection checklist. This includes holes in the walls, broken windows or pipes, and missing door handles, to name a few.
While doing an in-person inspection with your landlord is the best way to point out various damages that could impact your security deposit, sending photos of these issues to your landlord will also work to ensure that you’re not being charged for damages you’re not responsible for.
Read Through Your Lease
This step should be taken both when you move into a new place and when you’re leaving it. Included in your lease should be a deadline for when you need to let your landlord know that you will be moving out; if you miss that deadline, some landlords might even charge you another month’s rent, which is why it is important to review your lease as soon as you’re considering moving out.
Another aspect of your lease is a timeframe for when your landlord will return your security deposit. Many leases will state that you should receive your deposit back within thirty days of moving out, though this varies depending on leases and landlords.
Along with this, some states have laws limiting how much a landlord can charge their tenants in security deposits. There are also state laws that cap the amount of time a landlord can hold onto a tenant’s security deposit before returning it. Looking into your state’s laws on security deposits can be extremely helpful in knowing your rights as a renter.
Move-Out Cleaning Checklist
After understanding everything that your lease outlines in terms of your security deposit and moving out, you will then be tasked with cleaning the property. It’s understandable that this will be at the bottom of your “moving to-do list,” which is why we’ve provided a detailed cleaning checklist to make the process a bit easier.
Move-Out Wear and Tear vs. Damage
While looking through and cleaning out your apartment, you might find some minor — or major — damages that occurred during your time living there. In order to know if you will be charged for these, it is best to understand the differences between wear and tear versus damages.
According to The Balance Small Business, wear and tear occurs from everyday use while damage, whether purposeful or accidental, happens because of negligence. While both can be alarming to a renter, landlords cannot charge you for normal wear and tear. They can, however, take out money from your security deposit for various damages that they find.
This is another reason why it is important to have a joint inspection with your landlord before officially moving out of the unit; you will have the chance to point out whether there is simple wear and tear or damages while also gaining feedback from your landlord as to anything you missed while cleaning.
If your landlord does charge you for damages, thus taking some or all of your security deposit, be sure to ask for an itemized receipt of the issues found and the cost of repair. This will better inform you of why your deposit is affected and who should take on the payments (if you have roommates) or if the issues can be classified as damages in the first place.
With the help of a move-out cleaning checklist, guidelines for possible property damage, and information on your rights as a renter, you can comfortably navigate your transition from one home to the next.
When you’re ready to move and find your next home, use Realtor.com® to search for and reach out to rentals in your desired area. And if your next rental uses Avail, know that paying your rent online is not only easy but can even help you build up your credit score with timely rent payments.
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An apartment showing is a great chance to ask the landlord questions you may have on the property, see the apartment in person, and view the neighborhood. While there are other parts of the renting process you’ll need to prepare for, the first step is viewing the property in person to decide if you want to submit an application.
In this article, we share everything you need to know on apartment showings to help you feel prepared as a renter.
How to Act During an Apartment Showing
An apartment showing is the first time you’ll be meeting the landlord in person or speaking with them virtually. Below are a suggestions on how to act during an apartment showing to leave a good impression:
- Communicate professionally: When requesting a showing, be respectful of the landlord’s time and be sincere in your interest. Pick a mutually convenient time, share your phone number in case of last-minute issues (or to be notified if the unit is snapped up) and arrive on time. Professional communication is a two-way street: If the property manager is tough to pin down or short on details, keep in mind what that might mean if you have to rely on them for maintenance and repairs as a renter.
- Don’t come in blind: Before scheduling a showing, make sure the rental rate is within your budget. When landlords run credit checks, they’ll look to make sure your monthly earnings are at least 2.5 to 3 times the rental rate. If you know you don’t meet that benchmark but have a co-signer, consider sharing that info upfront so you won’t be disqualified.
- Bring a checklist: Having a list of questions to ask helps you cover your bases and demonstrates you’re organized and conscientious, which will score points with the landlord.
- Say thank you: Many landlords manage properties in addition to holding full-time jobs. Depending on the market, they could have dozens of showings a month. Expressing appreciation for their time is not only kind, it’ll go a long way toward showing the landlord you’re the kind of person they want as a renter.
The apartment showing should include a tour of the open unit and any additional spaces you’ll have access to, such as laundry rooms and amenities spaces. A showing is your opportunity to assess the space, ask questions and confirm the details so you know what your rent will cover.
Remember that you’re allowed to see all spaces and amenities that are included in your rent, and under Fair Housing laws, a landlord isn’t allowed to steer you towards a particular unit based on something like a disability or familial status.
What to Ask During an Apartment Showing
Before filling out a rental application, you should be well-informed on the apartment to avoid dealing with non-stop maintenance requests or issues. Here are three questions you can ask your landlord during an apartment showing:
- How are utilities handled? Will you need to set up any services under your own name? Are utilities included in the rental rate? If not, what’s the average utilities cost per month?
- How are requests for maintenance and repairs addressed? Some units have an on-site manager, others ask that you call or email with non-emergency requests. A good landlord should have a clear process for addressing issues and will appreciate you asking about the proper protocol.
- Can I take photos? If a unit is occupied during your showing, you may not be allowed to take pictures, but you should request an opportunity to do a walkthrough prior to move-in to take photos documenting the condition of the unit. This protects you from being charged for issues on move-out that predate your tenancy.
Finally, be on guard for scams. If a landlord shows you a model unit instead of the specific apartment open for rent, proceed with caution and definitely don’t sign an agreement without doing a walkthrough of the actual unit. Once you’ve filed an application and been approved to rent the unit, it’s time to ensure the terms of the rental lease align with your needs and expectations.
The two biggest rules of thumb for rental leases are: If you don’t understand something, ask, and always get changes in writing.
What If the Apartment Showing Goes Well?
If you’ve decided the apartment is for you, then the next step is signing a rental lease with your landlord. Every lease agreement includes different clauses based on where it’s located, but here are the main sections to look for:
- The lease length — and your options for terminating it early: Don’t assume you can find a subletter or leave the contract early without penalty. Make sure you understand and agree to the policy, and make sure the lease is detailed enough to outline all important rental clauses, rules and responsibilities.
- The roommate and pet policy: Landlords may allow roommates, but might have specific requirements for candidates or mandate that all occupants have to be on the lease. Likewise with pets: Leases may stipulate that only certain types of pets are approved, include a size restriction, or consider a portion of the security deposit a payment toward cleaning or refinishing floors when a pet moves out.
- Costs and payment options: Can you pay rent online, or are you expected to drop off a paper check at the end of every month? When is rent due and how much is the late fee? Landlords often require an application fee, move-in fee and/or security deposit prior to move-in, but you should not be asked to pay multiple months’ of rent upfront.
- Emergency procedures and maintenance: The lease should detail how emergency needs or maintenance requests should be communicated and how quickly you can expect them to be addressed. It should also include the lockout policy so you know who to contact if you lose your key and what it will cost.
- Which modifications are allowed: Even something as simple as painting or hanging pictures with nails may be a no-go in the lease. That said, there’s often room for negotiation. Just be sure to get any verbal agreements added to the lease before you sign.
Will I Need to Pay a Security Deposit Fee?
Landlords typically require renters to pay the first and last month’s rent and a security deposit before you can get the keys. Some states limit how much landlords can request for a security deposit, but some leave it up to the landlord’s discretion. Security deposits are often equivalent to one month’s rent, but check your state laws to make sure you aren’t overpaying.
You will only be required to pay a security deposit fee if your rental application has been approved by the landlord and you’re planning on moving in.
Find Your Next Apartment With Avail
An apartment showing doesn’t have to be stressful. They’re a great way to view the property, get to know the landlord, and see if it’s a right fit for you. If you’re still on the search for a new apartment, you can easily find nearby rental properties near you with Realtor.com®.
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Completing an apartment move-in checklist both before and after renting an apartment is a great way to ensure you get back your security deposit in full. Since unpaid rent and damages to the property can result in the landlord withholding part of the deposit, it’s important to have a checklist on hand to keep track of any damages that need to be escalated.
Here’s how to utilize a move-in checklist to increase your chances of getting your security deposit back in full.
What Is a Security Deposit?
A security deposit is a fixed amount of money a property manager or landlord will require you to pay to in order to move into the apartment. This fee is usually returned once the lease term ends, unless you caused damage to the property that you’re responsible for fixing or you were unable to pay rent.
A landlord is legally required to let you know why they’re withholding your security deposit and return it to you if you did not violate any part of the lease. Certain states also have limitations on how much a security deposit can be so it’s advised to research local landlord-tenant laws to ensure the amount is fair.
States vary in how much a property manager or landlord can charge renters and have price-caps they must abide. Landlords may be able to require one month’s rent or up to three months’ rent for a security deposit, but this varies on your background check and local ordinances.
Why Your Move-In Checklist Is Important
A move-in checklist helps protects both you and the landlord during the lease term. Unless the rental property is brand new, most homes have had previous tenants that may have caused wear-and-tear over time. Utilizing a move-in checklist allows you to track the condition of the apartment to help you be aware of any repairs that need to be done or damage to notify your landlord about.
How to Use the Apartment Move-In Checklist
- Read your lease agreement: A rental lease agreement should clearly outline what you’re responsible for fixing, as well as your landlord. If you’re responsible for repainting any rooms before moving out or cleaning the apartment, it’s important to be aware of this to avoid having your security deposit withheld.
- Take pictures and videos: Photographic evidence is the best way to defend yourself. Look for things like large holes in the walls, water damage, and even wear-and-tear the day you move in. Timestamp the pictures and store them in a file. If needed, you can use them as a reference upon move out.
- Reference your move-in checklist when moving out: You use this same move-in checklist when you move out. You can compare any pre-existing damage to current damage in the home. Be sure to spackle and paint any holes in the walls. Look at blinds and doorknobs so you can replace them as necessary. The last step is to clean the home from top to bottom.
It is far more cost-effective for you to clean and repair small things yourself before you return the keys to your landlord. If the landlord charges you, they may not be as cost-conscious repairing the damage if it’s not coming out of their own pocket. The goal is to get your security deposit back in full.
What Happens If You Don’t Get Your Deposit Back?
If your landlord withholds any portion of your security deposit, they will need to provide an itemized list of damages and repair costs, or months of rent owed. If your landlord paid to fix the damage that you didn’t cause, then you can rely on your move-in checklist to prove the damage was pre-existing.
There are also different types of damage, with one being the landlord’s responsibility and the others being yours. Here’s a list of damages to be aware of that can result in your security deposit not being returned:
1. Wear-and-Tear vs. Damage
The landlord may not charge your security deposit for wear-and-tear. This type of damage naturally happens when occupying a rental property. Examples of wear-and-tear are:
- Paint: Repainting after two years or more is normal. The landlord should not charge you for repainting if you’ve been in the home for over two years.
- Cleaning: The tenant should do a standard move-out cleaning that meets written standards. But the landlord should be cleaning things like ducts and septic systems.
- Locks: changing the locks after a resident moves out is customary. Owners do this for safety reasons. It’s a cost of doing business that owners should not charge for after moving out.
On the other hand, damage is caused by destructiveness or neglect on behalf of the tenant. The tenant will be charged to repair damage to the home, including:
- Damaged bathrooms: This includes missing toilet seats, broken mirrors, and cracked tubs.
- Urine stains: If you have a pet and you don’t clean up their urine that would come out of your pet deposit.
- Water damage: Most leases contain a mold addendum. It states that residents must notify management if there’s a leak. If there is water damage, you may be charged for the repair and potential mold remediation.
2. Unpaid Rent
The landlord can withhold all or part of your security deposit for unpaid rent. Unless you are withholding rent due to the condition of the home. For example, if the landlord refused to fix the furnace during the winter you may withhold rent. Be sure to speak with an attorney before going this route. Each state will vary regarding landlord-tenant laws. Make sure you check out your state’s laws before signing your lease.
Moving into your new rental is an exciting time. But you need to understand the agreement you are making with the landlord. It always helps to understand your rights. Especially when it comes to getting your money back.
Use the Avail Apartment Move-In Checklist
At Avail, you can complete a digital move-in checklist to send to your landlord for review. You can also invite your landlord to Avail to start making rent payments online, track maintenance issues, and more. Sign up today to set up your account and send your landlord an invitation to join Avail.
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Do you find yourself losing tenants right and left? Does it seem like renters are constantly late on rent or refusing to pay? Do people refuse to recommend living in your building to their friends? You might just be a slumlord — in this case, an absentee landlord who neglects property maintenance to maximize profits. Take this quick quiz to see if you’re a pushover, doing things right, or a slumlord.
Are You A Slumlord?
1. Your tenant calls you complaining about how the dishwasher isn’t running properly and it needs to be repaired. You suspect they simply aren’t using it correctly. You:
- A. End up replacing the entire dishwasher after they try it again and it still doesn’t work. (1 pt)
- B. Stress that they should rinse their dishes before putting them in the washer. (2 pts)
- C. Do nothing. As adults they should know how to load a dishwasher. (3 pts)
- D. Remove the dishwasher completely. (4 pts)
2. It’s 1 A.M. and your tenant has locked themselves out of their apartment. They give you a call, begging you to come let them in. You:
- A. Come immediately and open up their door. (1 pt)
- B. Come immediately and tell them you won’t do it again without charging a fee. (2 pts)
- C. Come sometime in the morning. Let them learn from their mistake. (3 pts)
- D. Ignore the phone call. They’ll figure it out. (4 pts)
3. Your tenant calls you saying they broke a window and need it to be repaired. You:
- A. Send a repairman over straight away. (1 pt)
- B. Offer the tenant a recommendation for repairman that they will have to pay for themselves. (2 pts)
- C. Buy some boxing tape and simply tape up the windows with cardboard. (3 pts)
- D. Tell the tenant they’re on their own. It’s not your problem. (4 pts)
4. Your tenant is late on rent. Again. You:
- A. Sympathize. You’ve been there before too. (1 pt)
- B. Implement the agreed upon late rent clause written in your lease. (2 pts)
- C. Knock on their door and threaten them with eviction, or violence, if they don’t pay up. (3 pts)
- D. Send someone larger and meaner than yourself to collect the rent. Plus turn off their utilities. (4 pts)
5. Your tenant tells you that there is a serious mold problem that needs to be addressed. You:
- A. Apologize profusely and send someone over the next day. (1 pt)
- B. Inspect the mold yourself and tell them that you will deal with the problem as soon as possible. (2 pts)
- C. Tell them that they must have caused it and should resolve it themselves (3 pts)
- D. Mention that there’s an asbestos problem in the unit as well and, whoops, you just forgot. (4 pts)
Is that Your Final Answer?
Count up your points for each answer and find out where you scored.
7 or Fewer Points: Pushover. You are cutting the tenant way too much slack. Remember, you don’t have to cave to every demand of the tenant. Just be sure to meet their reasonable concerns. This is a business relationship, and your bottom line should be your main concern, not catering to every whim of the tenant.
Between 8 and 12 Points: Goldilocks. The way you deal with your tenants is just right. You have established a mutually beneficial relationship in which neither of you abuses the other. Kudos!
13 or More Points: Slumlord. You have crossed the line by sacrificing the health and safety of your tenant for the health and safety of your business. Funny thing is, unless you keep the units nice enough for your tenants to live in, you won’t have a business. Unless you maintain the units and treat the tenants better, you meet the standard for a slumlord. Not something to be proud of.
Is Slumlord Just a Bad Stereotype, Though?
Granted, this definition of “slumlord” is purely colloquial. Many landlords have a different idea for what constitutes a slumlord. Although both parties agree that a “slumlord” is a landlord who usually maintains a large number of units in low-income areas, there is a difference in the idea of the intent of the landlord.
Tenants believe that slumlords purposefully do minimal maintenance, putting more responsibility on the tenant’s hands for up-keep, in order to keep all the profits for themselves. In reality, there are also good slumlords, where the intent is to keep the rent low enough for low-income renters to be able to afford to live there. If these landlords had to fulfill every single request and keep the place in perfect condition, they’d have to ask for higher rent amounts.
At the end of the day, without these “slumlords”, there would be fewer living options for low-income areas. That being said, all landlords and tenants should respect each other and honor any agreements they enter into while leasing.
Tips
But for our purposes, let’s pretend you’re a tenant. A tenant who wants to live in a nicely maintained, well ordered unit with a responsible landlord. A tenant who will, in turn, keep your property in good condition, pay rent on time, and be respectful.
In their mind, a slumlord is something to be avoided at all costs. If you’re looking to attract and keep high-quality tenants in your rental unit, you have to avoid any negative qualities that may mark you as a slumlord and prevent good tenants from renting out your unit.
Here are some tips on how to make sure that your potential tenants don’t come off with the wrong idea.
Tip 1: Give your tenants plenty of time to review and sign the lease. Pressuring them into it will only put them off and could make you look like you don’t want them to know what they’re getting into.
Tip 2: Keep the outside of your unit clean and tidy. Make sure there are no weeds, that the garbage area is kept neat, and that outdoor paint isn’t chipping. This is the first impression that the apartment will have on the potential tenant. If you can’t be bothered to keep the most visible part of the place in good repair, what would the inside look like? This can scare renters away who think that you will ignore their requests for maintenance or important replacements over time.
Tip 3: Respond promptly to any and all messages sent to you by the potential tenants, whether it’s emails, phone calls, or otherwise. This proves that you value them and their time, are willing to listen to any potential concerns they may have, and marks you as responsible. Fail to do so and you risk appearing disinterested and unwilling to listen, two key characteristics of a stereotypical slumlord.
Tip 4: Act professionally and answer any and all questions that potential tenants may have. If you look disheveled, tenants may think that this is how your properties will be as well. And if you try to cloak your answers about the lease or the amount of rent, tenants will assume that you have something to hide. Besides, immediately establishing an open and trusting relationship with the person who could be living in your rental unit is never a bad idea.
Tip 5: Monitor your online reviews. Even the best landlords can get a bad review now and then, but make sure that your entire profile isn’t negative. If so, people will automatically pass you by without even looking at the unit you’re offering.
Keeping these things in mind will prevent you from becoming the kind of landlord that tenants avoid, prevent you from getting into trouble with the law, and help you avoid some of the headaches involved with becoming a landlord. If you’re looking for more ways to be an awesome landlord, Avail can help!
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