Handling Security deposit
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Handling Security deposit (by LITX [TX]) Apr 14, 2019 3:23 PM
       Handling Security deposit (by Robert J [CA]) Apr 14, 2019 5:04 PM
       Handling Security deposit (by Pmh [TX]) Apr 14, 2019 5:04 PM
       Handling Security deposit (by myob [GA]) Apr 14, 2019 6:01 PM
       Handling Security deposit (by DJ [VA]) Apr 14, 2019 7:01 PM
       Handling Security deposit (by Vee [OH]) Apr 14, 2019 7:07 PM
       Handling Security deposit (by LITX [TX]) Apr 14, 2019 7:49 PM
       Handling Security deposit (by LITX [TX]) Apr 14, 2019 9:14 PM
       Handling Security deposit (by S i d [MO]) Apr 15, 2019 5:56 AM
       Handling Security deposit (by plenty [MO]) Apr 15, 2019 5:59 AM
       Handling Security deposit (by LITX [TX]) Apr 15, 2019 6:06 AM
       Handling Security deposit (by Dee [AZ]) Apr 15, 2019 11:52 AM
       Handling Security deposit (by Dee [AZ]) Apr 15, 2019 11:52 AM
       Handling Security deposit (by MikeA [TX]) Apr 15, 2019 3:35 PM

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Handling Security deposit (by LITX [TX]) Posted on: Apr 14, 2019 3:23 PM
Message:

What is the easiest way to handle tenant's security deposit if they decided to move into another one of your property?

Some places transferred the deposit after deductions to the new place.

TIA --47.32.xxx.xxx




Handling Security deposit (by Robert J [CA]) Posted on: Apr 14, 2019 5:04 PM
Message:

I must create a "receipt" or documentation to charge them for the last property's damages and then apply to the new property. I get them to acknowledge and sign the receipt/document. --47.156.xx.xx




Handling Security deposit (by Pmh [TX]) Posted on: Apr 14, 2019 5:04 PM
Message:

yes --166.137.xxx.xx




Handling Security deposit (by myob [GA]) Posted on: Apr 14, 2019 6:01 PM
Message:

Whole new deposit and paperwork fro new unit. No transfer allowed. --99.103.xxx.xxx




Handling Security deposit (by DJ [VA]) Posted on: Apr 14, 2019 7:01 PM
Message:

I say get a whole new deposit before signing agreement and letting them move into new place.

Then, after vacating previous place, inspect, repair, make accounting and refund or bill as usual. --68.10.xxx.x




Handling Security deposit (by Vee [OH]) Posted on: Apr 14, 2019 7:07 PM
Message:

Only if they have left the old unit spotless will they have anything to transfer to the account for the new place, this means you will collect a new move in money before keys get issued.

--76.188.xxx.x




Handling Security deposit (by LITX [TX]) Posted on: Apr 14, 2019 7:49 PM
Message:

I had that in mind DJ, thanks for the feedback guys.

--47.32.xxx.xxx




Handling Security deposit (by LITX [TX]) Posted on: Apr 14, 2019 9:14 PM
Message:

How about their nonrefundable pet fees? Will that be transfer to the new lease if there was no pet damages? --47.32.xxx.xxx




Handling Security deposit (by S i d [MO]) Posted on: Apr 15, 2019 5:56 AM
Message:

I don't allow transfers, but if I did, I would insist on a new deposit paid in advance just like any other new tenant, and I would refund the old deposit within 30 days less any charges beyond normal wear and tear.

In other words, I would pretend my transfer tenant is just like any other move-out, move-in. Why? Because if you transfer their deposit and they leave the old place dirty or damaged....what then? Going to ding your "new" tenants? Will they pay? Will they argue that you should just eat the cost since they were such "good" tenants?

Now you've got problems to deal with.

In a business relationship, both parties should benefit. In a lease transfer, the only person who benefits is the tenant. The LL has to fill a vacancy regardless (zero sum) and hire the turn-over crew (a cost to you), etc.

"If I don't allow transfers they'll move and I'll lose a good tenant!"

This is the common reason I hear used to justify allowing a transfer. Granted, that could happen, but is it always a bad thing to lose a long-term tenant?

First, I've noticed that most folks who say they're "thinking about moving" don't move. Second, long-term tenants are not always a blessing. Rather, they create a backlog of maintenance and 'refresh' issues that are rarely fully covered by the deposit. Wouldn't it make more sense to move someone new in about every 3 years so you can catch and cure all those issues while there is still enough deposit left?

I've had two tenants ask to transfer this year so far. I explained our policy of no transfers allows. All three of them are still in the same place: zero move outs. Zero stress for me.

Now for the other side of the coin: let's say they do move. Is this always bad? Every time someone moves I collect new pet fees ($300) that I otherwise would not receive, and as explained earlier I can use some or all of the deposit to fix damages beyond normal wear and tear. I also raise rent to market.

What is there to hate about this scenario? ;-)

Bottom line: if you're going to allow transfers, make sure you explain why it is necessary to collect a new deposit and how you absolutely will refund the balance of their old deposit ASAP once you've confirmed there are no damages or cleaning. But if I've given you some things to think about whether it's a good idea or not to keep long-term tenants, then consider carefully if you want to really do this transfer, and if so how are you truly benefiting? --173.20.xxx.xxx




Handling Security deposit (by plenty [MO]) Posted on: Apr 15, 2019 5:59 AM
Message:

Pet fee was never refundable even if no damage. Re read your post above. I would transfer the pet fee as in not collecting a new non refundable pet fee. If there is pet damage it forsure is billed or taken out of security deposit. --99.203.xx.xxx




Handling Security deposit (by LITX [TX]) Posted on: Apr 15, 2019 6:06 AM
Message:

You have a good point SID. I have never done a transfer, but heard others that have done it. It would just make sense to me to start the process all over with the deposit. One thing I am not clear tho is the pet fees which is a nonrefundable fees. Would they be charge again with the pet fees with the new place?

These tenants was okay, I would not mind losing them.

They have not submit their move out letter, so this not a for sure move. --47.32.xxx.xxx




Handling Security deposit (by Dee [AZ]) Posted on: Apr 15, 2019 11:52 AM
Message:

Transfers is setting yourself up for double vacancies (lost rents) which would generate twice the cleaning and repairs costs too so any rent raise gain would be negated for some time to come. If you do this enough, well you see what the outcome could be. And if you charge the tenant for move-out repairs and or cleaning on the first apt later, you could wind up with a hostile tenant who was otherwise a good tenant. I would say the cons win because I really don't see any pros in this situation. If you want to move out an old long term tenant on month to month when your ready to make improvements and charge more rent is the best outcome for the LL. --72.208.xxx.xx




Handling Security deposit (by Dee [AZ]) Posted on: Apr 15, 2019 11:52 AM
Message:

Transfers is setting yourself up for double vacancies (lost rents) which would generate twice the cleaning and repairs costs too so any rent raise gain would be negated for some time to come. If you do this enough, well you see what the outcome could be. And if you charge the tenant for move-out repairs and or cleaning on the first apt later, you could wind up with a hostile tenant who was otherwise a good tenant. I would say the cons win because I really don't see any pros in this situation. If you want to move out an old long term tenant on month to month when your ready to make improvements and charge more rent is the best outcome for the LL. --72.208.xxx.xx




Handling Security deposit (by MikeA [TX]) Posted on: Apr 15, 2019 3:35 PM
Message:

I've done a few of these over the years, usually for long-term tenants that have a life event (more kids, kids moved out) where they want a larger or smaller place. I also limit it to those that are tidy, I don't want to have a major turnover. I've never had a bad experience.

They pay the new deposit, I'll return what's left of the old deposit and deduct if it is not returned in the same condition they rented it. They pay rent for both places for the period they want to move and clean. The non-refundable deposit is to sanitize the unit after pets, so the pay that again for the 2nd place. There is a new lease signed when they take possession of the 2nd unit an the lease is closed on the 1st unit when they return possession. --50.26.xx.xxx



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