When we started out three years ago, we billed for the security deposit with the rental and banked the total, then returned our cheque after departure. Nowadays, we get the security deposit as a separate cheque and keep it, only banking it if there is a problem, normally returning it once the house is checked by the cleaners.
How do the rest of you manage this?
John
Security deposits
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Re: Security deposits
John,cromercrabholiday wrote:When we started out three years ago, we billed for the security deposit with the rental and banked the total, then returned our cheque after departure. Nowadays, we get the security deposit as a separate cheque and keep it, only banking it if there is a problem, normally returning it once the house is checked by the cleaners.
How do the rest of you manage this?
John
If you're not going to bank the check, you might as well not bother taking it at all frankly.
Agents here have always taken a separate check and do not to bank it, but this is because New York State Law requires anyone renting 12 or more properties to put the security deposit into a separate, interest bearing account for the benefit of the tenant. Since the Agents are not the ones bearing the cost of any damage, they couldn't care less if the tenant stops the check the minute the owner tries to take a deduction, so they are only looking out for themselves.
We have always completely ignored that convention and bank everything into the same bank account. We send the Tenant a statement of account on which it states that it doesn't matter whether they pay the final rent payment as a separate check or not, as it's all going to be cashed in advance of their arrival. It's their choice. Most send us a seperate check. We then write a new check for the refund. I have a German Family arriving shortly who paid me electronically in US$, so I have offered to refund that in hard cash at the Check Out. (I will do everything humanly possible to avoid those pesky bank fees!)
Our tenants from hell have been few and far between thankfully, but had we not banked hard cash in advance on those occasions, we would not have recouped a cent. We do not ask for a deposit at all from repeat visitors whom we know and trust, only from first time visitors whom we do not know very well. In my book, not paying a deposit upfront is a privilege that comes with having proven yourself, and a perk of being a repeat visitor.
I'm seriously thinking of taking credit cards for 2006 since I want to raise the amount significantly and there's a limit to how much you can expect someone to hand over in cash. On the other hand, any tenant from whom you would want to take a deduction could make a charge back.
My 2 cents,
Waves from America
Joanna,
If "any tenant from whom you would want to take a deduction could make a charge back" under the credit card system, wouldn't you be in the same situation as the owner who doesn't cash the sec dep chequewhen it arrives and & who thus, as you rightly say, might as well not take a sec dep?
I don't know how much you ask for the sec dep: have you researched this, to see if what you envisage is high compared with other properties like yours?
ps How is the house sale going??
If "any tenant from whom you would want to take a deduction could make a charge back" under the credit card system, wouldn't you be in the same situation as the owner who doesn't cash the sec dep chequewhen it arrives and & who thus, as you rightly say, might as well not take a sec dep?
I don't know how much you ask for the sec dep: have you researched this, to see if what you envisage is high compared with other properties like yours?
ps How is the house sale going??
Best,
Alexia.
Alexia.