How to Handle Security Deposits Properly
What’s a Deposit?
Since the dawn of time, landlords have been taking “security” or damage deposits from tenants to insure against potential property damages.
Centuries ago, a tenant could offer a promissory note against crops, livestock, or even children as a damage deposit. (Imagine that!)
Now, however, landlords require tenants to provide the money up front, usually one or two month’s worth of rent. This money is then held by the landlord until the end of the lease, and returned if there are no damages.
Tags: Security Deposits
