By Harvey Lynch
A security deposit is a landlord’s insurance against property damages that can be caused by a tenant. This deposit is paid up front by the tenant, and is held by the landlord until the tenant moves out.
Before the deposit is given back to the moving out tenant, the apartment is inspected for any damage or cleanliness issues. A portion of the deposit, or all of it, will go directly to fixing and repairing these damages.
Demanding a deposit when subletting a place is totally critical. If you do not have the money, then it is so much harder to extract it later when the damage has been done.
Naturally, you can take them to court to pay for the damages. This is much more tricky than holding a deposit though.
Before taking a security deposit, the landlord and potential tenant should view the property together and come to an agreement on the initial state of the rental unit. If there are any pre-existing circumstances in regards to the property, these should be carefully noted in the rental agreement.
The landlord should have photos taken before subletting the property as a record of its initial condition. When the tenant moves out, this process should be repeated so that there is no question as to how the initial condition of the property compares to its final condition.
During the process of initiating a deposit the property owner needs to be aware of all the legal requirements. These will depend on which state you live in so make sure you know what your responsibilities and rights are from the start.
In some cases the landlord will have to keep the money in a specific type of bank account. Or they may have to hand back all the interest the money has made since the deposit was given. These change from state to state so make sure you know about them right from the start.
This author has been blogging about rentals for the last four years. Furthermore, this author is fond of providing knowledge with respect to New York neighborhood subjects, such as Gramercy apartments along with Lower East Side rentals.
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Topics: Real Estate | Comments Off
MLA Style Citation:
Lynch, Harvey "Why It Is Essential To Demand A Security Deposit From A Subletter." Why It Is Essential To Demand A Security Deposit From A Subletter. 2 Jul. 2010. uberarticles.com. 13 Apr 2015 <http://uberarticles.com/real-estate/why-it-is-essential-to-demand-a-security-deposit-from-a-subletter/>.
APA Style Citation:
Lynch, H (2010, July 2). Why It Is Essential To Demand A Security Deposit From A Subletter. Retrieved April 13, 2015, from http://uberarticles.com/real-estate/why-it-is-essential-to-demand-a-security-deposit-from-a-subletter/
Chicago Style Citation:
Lynch, Harvey "Why It Is Essential To Demand A Security Deposit From A Subletter" uberarticles.com. http://uberarticles.com/real-estate/why-it-is-essential-to-demand-a-security-deposit-from-a-subletter/
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