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Insurance or Security Deposits: 3 Things Property Managers Should Know

Insurance or Security Deposits: 3 Things Property Managers Should Know

As over two-thirds of all households are rental properties, you must try to understand how security deposits work. If you do not know, you might make a mistake that could cost you hundreds, or even thousands, in the long run. So, it is time that you started learning if you are about to start renting out.

Below we list a few of the basic facts about what a security deposit is. This way, you can understand how you should handle security deposits in Florida and further afield.

What Is a Security Deposit?

These are a sum of money that the tenant gives to their property manager or landlord as they start their lease. The reason for it is to use as an up-front deposit to pull from in the case that the tenant is unable to pay rent or in case of property damage.

You will need to return this deposit when the lease ends, and the tenant moves out. There are also different laws and rules on how you should handle deposits depending on the state the rental property exists in. Make sure that you have researched how your local area handles them so that you do not end up in legal trouble.

1. Put Security Deposit Info in the Lease 

First off, you should make sure that you make the details of any Florida security deposits clear in any agreement that you have with your tenant. Having it in writing means that there is no confusion about its details.

The full list of things you should record in the agreement includes:

  • The dollar amount of the security deposit
  • The date the tenant paid the deposit
  • Where you will store the deposit
  • Explicitly state that you will refund the deposit subject to the terms of the contract

Your local statues may mean that some of the above should have certain details. Look more into them before putting the agreement in writing.

2. Record Everything For You and Your Tenant

Give your tenant invoices or receipts for everything they have paid. Also, keep one for yourself. This allows you both to have records that everything is in order moving forward and in case of disagreement.

3. Return the Deposit On Time

Pay back the deposit at the earliest convenience. You should also know what the time limit for returning a Florida security deposit is. This way, you can avoid legal issues.

More Information About Security Deposits

With the above information, you should now understand more about security deposits. As such, you can now handle security deposits in Florida for your properties. If you need help and want someone on your side, though, you can always ask us for a little bit of help.

Our property management services exist to help you handle your property with the least effort. Work with us to place your property on the market and handle any issues that come up. If you want to learn more first, you only need to call us up, and we will go over your options.