The deposit serves a few purposes. First, paying a deposit is a way for the renter to put some skin in the game before they take possession of your property. It is a way to solidify the agreement that the renter will fulfill their commitment in renting from you, and will not back out before the move in date. This is important because you will have cleaned and prepared the property for the renter, and also likely turned down other potential renters for that time. If your renter fails to move in or rent from you, you have the investment they made as a deposit, so you are not completely without income on the property until your next renter. There may be some exceptions that allow for a deposit refund in cases like this, but your Saint George property management team can help you to determine those in your lease agreement beforehand.
The second reason to charge a deposit is that it protects the renter and helps them feel secure about renting from you. If they have paid a portion up front, they are right to expect that you as the landlord will uphold your end of the bargain—which means providing the place for them to live or stay that has been promised, and on the date that both parties have agreed to. The renter can rely on the details in their lease agreement to know what to expect regarding their deposit and what they will receive in return.
Lastly, the security or cleaning deposit protects you as the landlord or owner from being held responsible for any costly maintenance incurred by your renters. The deposit amount should be enough to pay for reasonable damages that could be incurred during the duration of your renters’ term of the lease. Every situation is different, and your Saint George property management service can help to advise you about the right deposit to charge for your property. If you are renting a home or apartment for a longer term, a general rule of thumb for a security deposit charge is equal to one month’s worth of rent. If you are renting a home for vacation stays, a wiser deposit charge might be just enough to cover your cleaning cost after a week stay, plus some extra cushion in case a renter breaks an appliance or fixture. Your deposit will depend on the type and quality of your rental property, but it will need to be clearly outlined in your rental agreement. You can consult with a Saint George property manager regarding drawing this up correctly so that you and your renter are on the same page about the deposit for your property.
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