Benefits of Security Deposit

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Security money is the sum of money that a landlord takes from his tenants to the addition of the first month rent. When a landlord choose tenants for his rental properties then he collects the advance first month rent and security deposit that cannot be more than one month’s rent amount. But what do you think that why a landlord charge security deposit from his tenants when it is refundable? Well, it is true that security deposit is refundable but a landlord can keep a portion or the entire security deposit for the below-mentioned reasons:  
·         Damage to the property.
·         Early termination of lease.
·         Non- payment of rent.
·         Cleaning cost.

So, if you are new in this business and you don’t know the importance of security deposits that why you must take it from your tenants. Here are some important benefits of security deposit:
·         Tenants More Careful.
·         Safeguard Against Damages.
·         Safeguard Against Non-Payment.

Tenants Moe Careful
When you take security deposits from tenants then they become more careful. They know that if they make any mistakes during their occupancy then the landlord has the full right to keep the security deposit and no one wants to bear a huge loss. So, the tenants become more careful.

Safeguard Against Damages
It is allowed to the landlord in different states to keep the portion of security deposit to cover the damage costs if the tenant will damage his property. The security deposit works as safeguard against damages. Your tenants now know much better that if they make any damages so they won’t go to get the security deposit hence they will pay much more attention for the safety of your property and will not harm the property.

Safeguard Against Non-Payment
Tenants many times fail to pay the rent on time or some of them just neglect to pay it on time for such kind of tenant security deposit works as a safeguard against non-payment.

So, these are the three main benefits of security deposits. If you are new to this business then you must keep these benefits in mind and take security deposits from the tenants. But it is advisable you to consult the expert for this because the rules or law differs from state to state. You must hire professional property management company in Baltimore to manage your rental property. They are the best to manage property in good condition and also for finding the right and high quality tenants for your Baltimore rental property.


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