security deposit quick question

[legalese]

Connecticut, When i do a credit check i get a security deposit (1 month) Unfortunately I have been having the worst renting season ever, Every one has been a nightmare credit wise. Once i reject them do i have to give them the i month security check back, some request it or can i just rip it up. I would prefer not to see some of them again

legalese

 

[Zigner]

Connecticut, When i do a credit check i get a security deposit (1 month) Unfortunately I have been having the worst renting season ever, Every one has been a nightmare credit wise. Once i reject them do i have to give them the i month security check back, some request it or can i just rip it up. I would prefer not to see some of them again

legalese

Why in the world would you take a deposit without knowing if you would be renting to them?

ETA: Based on your other threads, I would seriously suggest that you hire a professional property manager.

 

[legalese]

Why in the world would you take a deposit without knowing if you would be renting to them?

ETA: Based on your other threads, I would seriously suggest that you hire a professional property manager.

We take a deposit to hold condo, then if credit good we rent otherwise i return deposit. Been doing that for years. What about my question?

legalese

 

[las365]

The US Postal Service is a dandy way to send things to people.

 

[Zigner]

We take a deposit to hold condo, then if credit good we rent otherwise i return deposit. Been doing that for years. What about my question?

legalese

The only rational advice to give you is to seek the assistance of a professional property manager.

 

[Gail in Georgia]

I do not take a security deposit but we do charge a screening fee for a credit/criminal check.

There have been times that an applicant is ruled out prior to doing the online credit/criminal check; for example, information regarding employment or a negative rental history from their current landlord.

Because I see no reason to waste their money running the credit/criminal check, I return these fees via the mail with a note saying there is no reason to go any further on the screening process.

Gail

 

[Searchertwin]

Connecticut, When i do a credit check i get a security deposit (1 month) Unfortunately I have been having the worst renting season ever, Every one has been a nightmare credit wise. Once i reject them do i have to give them the i month security check back, some request it or can i just rip it up. I would prefer not to see some of them again

legalese

If you don't rent to them, than yes, return the check back them. BUT send it to them by ccr letter and photocopy the check.
This way you don't have to see them, mess with them and they get their money, which is owed to them.

You need to have an application fee. But use common sense, don't ask for a month's rent. This way you can run a credit check and the tenants know they will lose the fee if you don't accept them. They know if something will show and they won't want to lose their money.

If you continue having trouble, hiring a property management. Or talk to several others LL in area for advice. Start learning all the in's and out's of being a LL.
Good luck

 

[legalese]

I do send it back to them certified mail but i wanted to know if some of the people i turned down want the security check back but i decide to just rip it up that's okay too? just askihng out of curiosity.

Zigner, we only have a few properties so it would not make sense, cost-wise to get a property manager
and this is the way the real estate agents my parent used years ago did it, by getting month up front to hold the apt, sometimes people change their mind but if they lose a deposit they won't change their minds.
I have been doing this for years an NO problems with my tenants, besides i don't need a property manager i have this forum

Though after reading some of the replies perhaps i won't get a securty up front anymore. Just wanted you to understand why i do it. If things have changed I might change as well

legalese

 

[MIRAKALES]

The “security deposit” (which should be a rental binder) should be returned to the tenants by USPS.

The property owner should only accept a rental binder prior to lease signing.
The rental binder is used as a holding fee and is converted to the first months rent upon approval of the rental application. The rental binder is refundable within a specified period of time (generally 5-10 business days) provided the rental application has been approved. The rental binder is non-refundable provided the rental application is approved and the tenant requests cancellation of the rental application past the specified time period.

The State of Connecticut allows the property to collect a maximum security deposit of two months rent.
In order to manage otherwise qualified tenants with stable (5+ years) employment and substandard credit or non-local references, consider collecting one months rent, two months security, and last months rent (without regard to the prospective tenants credit and references).

 

[ecmst12]

Besides being an absurd amount of money, collecting 4 months up front would violate the law of maximum 2 months security. "Last months rent" would be considered part of the deposit.

 

[MIRAKALES]

Connecticut Security Deposits v. Last Months Rent

Connecticut Security Deposits: Section 47a-21 of the state Statutes
Amount of Connecticut Security Deposit: The security deposit can't be more than two month's rent. In addition, the landlord can require the first month's rent before move in. If the tenant is 62 or older, the landlord cannot demand or hold more than one month's rent as a security deposit.
(Connecticut has some very specific distinctions in the law.)

Connecticut Security Deposits
Under Connecticut law, a security deposit is any advanced payment made by a tenant which exceeds the first month's rent. It does not matter whether the advanced payment is called a "last month's rent," "pet deposit," etc. Whatever money a landlord takes from a tenant exceeding the first month's rent, will be security deposit under Connecticut law.

* * *​

How Much Can a Landlord Request
In most states, the last month's rent and security deposit each can be no more than the first month's rent. For example, if your first month's rent is $1,000, a landlord can charge you $3,000 ($1,000 for the first month's rent, $1000 for a security deposit, and $1,000 for a last month's rent payment), plus the cost of a new lock and key.

With that said, not all states have a minimum or maximum security deposit limit.
In many states, the maximum security deposit is either one months rent or two months rent. While other states have no minimum or maximum security deposit laws, and allow the property owner to charge a security deposit based upon the assessed value of the property or assumed risks of the tenancy.

Differences Between a Security Deposit and a Last Month's Rent Payment
A security deposit and a last month's rent payment are not necessarily the same thing in all states. A security deposit is money that you pay and expect to get back after you move out. The purpose of this money is to protect the landlord in case tenant damages the apartment or leaves owing rent. In the eyes of the law, a security deposit is the tenant’s money. For this reason a landlord must keep it in a bank account separate from the landlord's money (and safe in case he goes bankrupt or gets foreclosed on) and must pay interest every year. When the tenant moves out, the tenant does not automatically have the right to withhold the last month's rent simply because the landlord holds a security deposit.

The purpose of a last month's rent payment is to protect a landlord against a tenant's leaving without paying the last month's rent. When the tenant pays last month's rent in advance, the tenant should not expect to get this money back at move out. Instead, it will pay for the last months rental. Also, a landlord does not have to put the last month's rent money in a separate bank account while in their possession. The landlord does, however, have to pay the tenant interest on it every year.

 

[ecmst12]

Connecticut Security Deposits
Under Connecticut law, a security deposit is any advanced payment made by a tenant which exceeds the first month's rent. It does not matter whether the advanced payment is called a "last month's rent," "pet deposit," etc. Whatever money a landlord takes from a tenant exceeding the first month's rent, will be security deposit under Connecticut law.

So....I was right.

 

[MIRAKALES]

So....I was right.
Besides being an absurd amount of money, collecting 4 months up front would violate the law of maximum 2 months security. "Last months rent" would be considered part of the deposit.

Wrong on so many different levels because the answer was not specific to the State of Connecticut.
The generic reply was too opinionated to warrant any significant contribution.

"An absurd amount of money" would be relative to the absurdity of expecting to rent an apartment with extremely poor credit and no further attribution.

"Collection four (4) months rent" does not violate the security deposit law in all states because not all states (i) consider the last months rent to be a security deposit, or (ii) have a two month security maximum.

Being right and having a very general, non-specific opinion should be distinguished.

 

[ecmst12]

No, I was not being generic, I was referring to this poster's state. If the state limits the amount of deposit being collected for a deposit, it is going to include ALL money being collected for that deposit. If it doesn't limit the deposit, then it doesn't matter. You gave bad/illegal advice and you failed to acknowledge it or apologise to the poster. I corrected you and you are claiming I was making a generic response. I was not. I was simply correct and you were not.

 

[Consultant One]

non-refundable pet deposits in Ohio and elsewhere

If the lease language states that it is a deposit, it must be refunded minus any damages. If it is a pet "fee" for the right to keep a pet on the premises, depending on your state, you might not receive a refund. In several court cases, non-refundable "deposits" have been ruled illegal as the word "deposit" indicates that it will be returned minus any damages.

In most states CATS are not considered pets where dogs are considered pets. Check your states laws under pets.


abc (state name) revised code Section ? Pets. They will list what your state defines as pets. In Ohio, CATS are NOT PETS.

If your lease says no pets, it means dogs, etc.

Remember, if the lease says Pet Deposit, it must be refunded plus interest (in most states) minus any damages. You must receive a list of damages within 30 days of providing your landlord with a forwarding address. In many states including Ohio if a landlord fails to return the deposit, you can sue for double damages plus attorney fees.

I am not an attorney (thank God) but I am a Legal Research Consultant.

Look carefully at the wording of your lease.