In general, keeping and handling security deposits is straightforward, but there are a few instances when disputes can arise. However, state and local laws vary in regard to giving back a security deposit. If you’re unsure how to navigate the situation, this article will review when and how to give back a security deposit.
What To Do Before Giving Back a Security Deposit
Security deposits are meant to ensure tenants respect your property and help you cover any damages a tenant incurs. This means it is in your best interest to fully inspect the property on a tenant’s move-out day before you give back their security deposit. If you give back the security deposit before checking for damage, you may have trouble getting that money back.
In truth, it’s best to conduct this walkthrough with the tenant present so that you can discuss any issues and resolve them as soon as possible without having to do complex back-and-forth communication. In doing so, you’ll better protect the security deposit and your property.
When To Give Back a Security Deposit
The best time to give back a security deposit is after you’ve conducted the walkthrough with your tenant and agreed on any deductions that need to be paid. If there are any damages, it is required that you provide the tenant with an itemized list of the damages. Afterward, you have a specific amount of time allotted to give back the security deposit before the tenant can take action against you. This amount of time varies from state to state and can be as short as two weeks or as long as two months, depending on where the property is located.
How To Give Back a Security Deposit
How you give back the security deposit depends on what’s listed in your lease agreement. For example, if you require your tenants to transfer the deposit through online banking, you’ll want to do the same when giving the money back. If you didn’t stipulate how to receive and send back the deposit in the lease agreement, speak with the tenant and ask them which method they prefer. It is the tenant’s responsibility to provide you with contact information or address changes for this purpose. If they do not do so, document your efforts of trying to give back the deposit; you need to make a reasonable effort to try and contact the tenant.
If you’re having security deposit troubles, struggling to fix property damage, or need help with any other issues that come with being a landlord, Excalibur Homes is on your side. We’re a Decatur property management company dedicated to helping you through the ups and downs of being a landlord.
