Returning Your Tenant’s Security Deposit
Many people don’t know that if you fail to return your Tenant’s security deposit within the time frame allotted by your particular state . . . there can be some very serious consequences. As an example, the state of California mandates that you are to return your Tenant’s security deposit to them within 21 days (3 weeks). In California as in many states, if you fail to return the deposit within that time frame then first, you will lose the right to charge the Tenant for anything! It doesn’t matter if your Tenant owes you for three months of rent, late charges and they tore up your property . . . by returning the money late . . . you waive your right to charge the Tenant for anything at all! But wait . . . there’s more! Also, in many states if you miss the deadline, your Tenant is entitled to TWO TIMES the amount of security deposit. Translation: if the Tenant paid a $2,000 security deposit and you miss the return date, you could have to pay them $4,000 AND not be able to charge them for any back rent or late fees owed or for repairing any damage they may have done to your property!
The requirements for returning security deposits varies widely from state to state. I suggest that you Google “Tenant-Landlord” of “Returning Security Deposit” and add the name of your state; example: Tenant-Landlord Kansas or Returning Security Deposit Texas to get the specific information for your state.
Thank you for reading!
Pat and Kris
This tip is part of the scores of information contained in the new Property Management Training Program; Manage to Make Money . . . . the Real Estate Series. This new series has been developed around the book: Manage to make Money . . . Your Guide to Profitably Managing Rental Properties written by Pat and Kris Larkin and is being offered at various locations throughout California and in Kansas City this spring. For a schedule of workshops CLICK HERE.
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