Paying
your rent is probably the simplest part of renting a house or apartment,
assuming you have the money; you simply pay the rent according to these terms
set in the rental agreement. However, it is a very important part of the rental
arrangement and there are laws that solely address the paying of rent and
security deposits. Security deposits are sums of money held by the landlord to
pay for any damage in the unit at the end of the lease period, and state laws
dictate how soon it must be repaid after the lease ends. This section includes
information about rent and rent control, in-depth tips on paying security
deposits, how to protect your security deposit, rules and advice for landlords,
and more.
For Landlords: Handling the
Rent and Security Deposit
Managing
a rental property can be hard work, particularly for properties that require
extra maintenance and upkeep. While collecting money from tenants each month
seems simple enough, there are certain steps you can take to minimize any
confusion about rent and due dates, and to ensure payment on time. Suggestions
include the following:
-
Make sure the rent amount, due date, and method of payment are clearly written in the signed lease agreement
-
Provide the tenant with a receipt each time they pay rent, which could protect you in
the event of a dispute
The
handling of security deposits may be determined in part by your state's laws,
many of which require landlords to keep deposits separate from other income
(sometimes in an interest-bearing account). And keep in mind that many states
limit the amount of security deposit a landlord may request, typically based on
the rental amount. For instance, some states limit the deposit to twice the
amount of rent.
If
you collect last month's rent in addition to, or instead of a deposit, you may
not use it pay for repairs or otherwise as you would a deposit.
For Tenants: Security Deposits
at a Glance
Most
landlords require the payment of a deposit prior to the start of the lease
period, which is either held in escrow, kept on file, or otherwise accounted
for. When the lease ends, the landlord may use the deposit to pay for repairs
or professional cleaning. If your landlord asks for last month's rent, keep in
mind that this is not the same as a deposit (it is simply a prepayment).
Therefore, landlords may ask tenants for both first and last month's rent in
addition to a deposit.
As
a tenant, don't assume your landlord will simply put the check in your file and
return it all once your lease is up. In order to protect yourself, make sure
your landlord gives you a written receipt for the deposit (and last month's
rent, if applicable). The receipt should include the amount paid, date on which
payment was received, purpose of the payment (i.e. "security
deposit"), names of the parties involved, and the landlord or property
manager's signature.
Some
state's require landlords to pay interest on the security deposit and
prepayment of last month's rent, so check your state laws.
It's
also very important to take stock of the condition of the rental unit before
you move in, perhaps including photographs where necessary, and have the
landlord sign off. That way, the landlord cannot charge you for damage that
existed prior to your lease. When it comes time to reclaim your deposit (or
what's left of it), make sure the landlord gives you an itemized list of
damages and written estimates.
Source
Link: http://realestate.findlaw.com/landlord-tenant-law/rent-security-deposits.html