 Difference between ..... (by Carla [NM]) Sep 9, 2008 9:42 AM
 Difference between ..... (by LC [IL]) Sep 9, 2008 9:52 AM
Difference between ..... (by Stephen [WA]) Sep 9, 2008 10:04 AM
Difference between ..... (by John... [MI]) Sep 9, 2008 10:49 AM
Difference between ..... (by Carla [NM]) Sep 9, 2008 2:13 PM
Difference between ..... (by DIXIE [KS]) Sep 10, 2008 6:42 AM
Difference between ..... (by Carla [NM]) Posted on: Sep 9, 2008 9:42 AM
Message:
State Specific Question About: NEW MEXICO (NM)
What is the difference between last month rent and security deposit Can I request both from my tenant along with first month rent? --72.177.xx.xxx |
Difference between ..... (by LC [IL]) Posted on: Sep 9, 2008 9:52 AM
Message:
Last's month's rent is just that: up front payment of the last month. Security deposit to offset any damages past normal wear and tear.
I assume you can charge both in your state. If the market will bear it, I may add. If most LLs in your area don't charge last month's you may be hard set to get a renter willing to pay it. --12.232.xxx.x |
Difference between ..... (by Stephen [WA]) Posted on: Sep 9, 2008 10:04 AM
Message:
difference between last month rent and security deposit:
*Last month rent is a pre-payment of the rents due for the final month of occupancy.
*Security deposit is funds held by the LL to ensure/guarantee compliance w/the agreement, normally relating to the cleaning and maintenance of the property upon move-out. Deposits are refundable (by definition). Each state has specifics about what may be deducted from the security deposit and how and when the balance must be refunded. With that refund the former tenant must be informed about what was deducted.
The security deposit is NOT used to pay the last month's rent but if the tenant bails leaving unpaid rent, usually you may list the unpaid rent as one of the deductions from the security deposit along with the replacement of the kicked in front door, etc.
The last month's rent pays for the last month. So when the tenant gives you notice, you already have the rent. But it provides no funds for cleaning or repairs that are deductible. --207.200.xxx.x |
Difference between ..... (by John... [MI]) Posted on: Sep 9, 2008 10:49 AM
Message:
However, it should be noted that, in many states, "last month's rent" is still a DEPOSIT. Therefore, you still may need to count it as such. In MI, for example, the maximum deposit is 1.5x the monthly rent. So, if the rent was $500 and you collected a 400 deposit plus another $500 for "last month's rent", you would technically be in violation of the law -- because you collected what is essentially a $900 deposit when the maximum would be $750.
So, be sure to check state laws for NM. A quick search that I just did came up with the following: "A landlord cannot charge a tenant more than one month’s rent as a deposit on any rental agreement of less than a year. If the rental agreement is for a year or more, the landlord may collect a deposit of more than one month’s rent; however, if he or she does so, he or she must pay the tenant current passbook interest on the whole deposit."
- John...
--207.241.xxx.xx |
Difference between ..... (by Carla [NM]) Posted on: Sep 9, 2008 2:13 PM
Message:
I know security deposit is NOT last month rent. Thank you for who clarified that.
Ciao! --72.177.xx.xxx |
Difference between ..... (by DIXIE [KS]) Posted on: Sep 10, 2008 6:42 AM
Message:
Carla, Of course, YOU know that the deposit is not the last month's rent. Problem is, tenants don't know that [or pretend they don't] and try to slip it by. --207.69.xxx.xxx |
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