Most tenants are overprotective when it comes to their security deposit, but they have a good reason to be. It is not rare for tenants to encounter landlords who mishandle security deposits or make deductions unreasonably. That is why a lot of legal disputes surrounding the matter happen between landlords and tenants.

However, in such disputes, it is not always the landlord who is at fault. Some unfair tenants would file disputes despite the deductions being justifiable so that they will get their deposit in full.

As a rental agent, you would want to avoid this from happening because you have a responsibility to both parties. When it comes to security deposits, make sure that potential tenants and their future landlord are on the same page.

Security Deposit Policy

You must know how the landlord handles tenants’ security deposits. If you must, coordinate with the landlord on how to improve his policy where necessary, wherein it will not put off tenants from renting.

Be clear on cleaning

Tenants hope to get more (if not all) of their security deposit back by performing the end-of-tenancy cleaning themselves. They will try to restore the cleanliness of the unit before they move out. If they do, they will expect that cleaning expenses will not be deducted from their security deposit.

However, most landlords automatically hire professional cleaners each time a tenant moves out. If this is the landlord’s current protocol, tenants must know that the unit will still undergo professional cleaning. They would no longer waste their time and effort to clean it themselves and not have false hopes. Wrong expectations often leads to conflict.

When professional cleaning is not standard protocol after a tenant leaves or no non-refundable cleaning fee was collected, the landlord must give the tenant an option to personally clean the unit. If he does not want to, the landlord can hire a cleaning service but can not deduct it from the security deposit.

The landlord must also know when professional deep cleaning is necessary and when it is not. It would not be fair to charge a tenant a hefty cleaning fee after their 3-month tenancy with minimal impact on the property’s overall cleanliness.

Use deposit as rent

Not all states allow that a landlord can deduct rent from the security deposit. For example, some tenants would ask the landlord to take the rental payments for their last month from the security deposit. The request may seem simple and harmless, but in reality, it puts the landlord in a vulnerable position.

Some deceitful tenants would request such an arrangement. They will then sue the landlord for not returning their security deposit. Even if the landlord can prove that the tenant made the request, fighting the lawsuit will still consume time, money, and effort.

Non-refundable fees

Separating non-refundable fees from refundable security deposits is a good way to make everything clear for both landlord and tenant.

Routine expenses for the move-out and move-in process should be non-refundable fees, separate from the security deposit. For example, if the landlord spends on professional cleaning after every tenancy, he must consider charging a non-refundable cleaning fee at the beginning of the lease. If it is charged as a deduction from the security deposit, the tenant will most likely complain if they think professional cleaning was unnecessary.

Document all walk-throughs

The most expensive security deposit deductions are those related to damage. So it’s no surprise if this is where conflicts often arise. However, if there is photographic and videographic evidence of the property’s condition during move-in and move-out walkthroughs with the tenant, repair deductions will be easy to justify. Descriptions must also be written down and signed by the tenant and landlord.

The landlord must keep and send copies of receipts for any deduction from the security deposit.

Same page from the get-go

After you publish a listing on Padleads (where many rental agents like yourself market properties), you have to be ready to put the interest of both the landlord and potential tenant at heart. From the get-go, exert effort to explain to the tenant the landlord’s policies, especially when it comes to financial matters like security deposits. That way, both parties will stay on the same page from the beginning until the end of the tenancy. The clearer it is for both parties, the less chance of conflict.