 Maximum Deposit (by Al [NC]) Nov 13, 2008 12:27 PM
 Maximum Deposit (by Terry [CA]) Nov 13, 2008 12:45 PM
Maximum Deposit (by tyler [NC]) Nov 13, 2008 12:55 PM
Maximum Deposit (by sid [MO]) Nov 13, 2008 1:48 PM
Maximum Deposit (by Terry [CA]) Nov 13, 2008 11:48 PM
Maximum Deposit (by Al [NC]) Posted on: Nov 13, 2008 12:27 PM
Message:
State Specific Question About: NORTH CAROLINA (NC)
What is the maximum that can be required for security deposit? I'm considering a 4 bedroom home to college students and want to protect myself in case damages exceed what I normally require(amount = to one month's rent). --74.162.xx.xxx |
Maximum Deposit (by Terry [CA]) Posted on: Nov 13, 2008 12:45 PM
Message:
From: NC Article 6 Tenant SD act
§ 4251. ......The security deposit shall not exceed an amount equal to two weeks' rent if a tenancy is week to week, one and onehalf months' rent if a tenancy is month to month, and two months' rent for terms greater than month to month. These deposits must be fully accounted for by the landlord as set forth in G.S. 4252.
--207.200.xxx.xxx |
Maximum Deposit (by tyler [NC]) Posted on: Nov 13, 2008 12:55 PM
Message:
terry's on the money....
you'd be smart to google. North Carolina landlord/tenant Statutes.... go to the NC site....type in chapter 42 on the state site....
print the whole thing out.... thats it all in a nutshell.... --75.181.xxx.xxx |
Maximum Deposit (by sid [MO]) Posted on: Nov 13, 2008 1:48 PM
Message:
Here's another thought. I find that security deposits often are a headache, but you need to have something to at least provide the occupants incentive to leave the place in good shape upon move out. So defnintely have a deposit, but instead of charging the maximum deposit allowed, try upping your rent slightly and have your deposit slightly lower than your competition.
For example, for a 2-bed unit in one of my neighborhoods, the market rate deposit is $300 and rent is $425. I will make my deposit $200 and rent is $445. Tenants often do not think logically or about cost of rent over time. All they want to know is "what does it cost to move in?" They compare my rent/deposit to the competition. Wow, I'm only $645 vs my competition who is $725. Smart tenant thinks he's "saving" almost $80. But over the year, I collect an extra $20 per month or $240. And this is mine to keep regardless of how the tenant leaves the unit. At move-out time, a filthy or destructive tenant won't care about an extra $100 deducted from his deposit. Many of them consider the deposit "gone" regardless because a lot of LL's try to recoup normal wear and tear against them. This angers the tenant so they figure to leave a mess and just pay $100. Heck, why should they spend 10 hours doing a thorough cleaning in addition to moving? But I come along and promise the tenant the full refund (minus carpet cleaning) if they leave it in good shape. Now remember I'm already ahead of my competition because I collected an extra $140 rent ($240 less the $100 difference in security deposit). BUT, I can almost bet that my tenant will leave the unit cleaner because he knows he's going to get more back from me than the competition who is trying to makeup his wear and tear losses thru bogus security deposit deductions. He should have just charged more rent up front and gotten to keep it all! --204.80.xxx.xx |
Maximum Deposit (by Terry [CA]) Posted on: Nov 13, 2008 11:48 PM
Message:
Security deposits a headache???? They are the one thing left for LL's to try and protect their property with!
Charging higher rent than your "real" market could hurt you...you won't be competetive because applicants FIRST search for rental rates they can afford THEN look at SD and other costs.
$200 won't fix a thing at the end of a tenancy and certainly won't motivate a tenant to clean up the place well even with a promised refund which should not be "outstanding" as that is the implied promise of every good LL..to refund 100% of the deposit if left in good shape. I rarely deduct anything from SDs and I sure don't see them as a "headache" even in CA where we must provide invoices, etc. IF I have to deduct anything, I am more than happy to comply with this.
--207.200.xxx.xxx |
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