Georgia has the 15th highest rental vacancy rate in the United States, with around 7.8% looking for renters. There may be some competition if someone wants to rent a property in Marietta, Georgia.
Therefore, you want to be sure you are well-versed in understanding, setting, and collecting security deposits. Potential renters want to feel comfortable handing their security deposit to you, so here are the facts you need to get it right.
What Is a Security Deposit?
Before a tenant moves into a landlord's property, they will typically provide a payment that would potentially cover the cost of repairs or missed rent payment, if needed. This can help protect the landlord from incurring unexpected expenses. It can be anything from cleaning the stain on carpeting or covering rent if the tenant becomes unemployed.
In Marietta, Georgia, a security deposit usually equals one month of rent. However, the state of Georgia does not have a limit.
How to Collect Security Deposits
Security deposit collection should be done as soon as possible and before moving in. This could be a way for the tenant to secure the property.
Landlords in Georgia can store their security deposit in one of two ways. They can place it in an escrow account or post it as a surety bond. Failing to store it properly can result in landlords losing their right to keep anything.
Further, the landlord must give the tenant a written notice before and after receipt of the security deposit. Failure to provide notification can also cause the landlord to lose some of it.
How to Set Security Deposit Amounts
While the average security deposit amount is one month of rent, some landlords charge up to three months. While charging more gives the landlord more of a buffer in case something goes awry, looking at what other landlords are setting their deposits at in the neighborhood is essential. You may want to assess what others are charging renters to be competitive.
Pet Deposit
While you do not have to accept pets, it may be a good idea to charge an additional pet security deposit if you choose to. However, you cannot set a pet deposit if the renter has a disability and the pet is a service animal or provides emotional support.
Allowable Deductions
The state of Georgia lets the landlord cover particular "damage" with the security deposit, depending on the factors. You can use the deposit to cover the following issues:
- Any damage that occurs from a tenant abandoning the rental property
- Cost to repair damage that is beyond typical wear and tear
- Pet fees
- Unpaid rent or utility bills
The damages must meet two requirements: either that the damage is not "existing damage" included in the lease or that it does not meet regular wear and tear.
Security Deposit Collection Services
Get ready to handle security deposits professionally. It pays to get help. PMI Cobb can care for your tenant's security deposit and keep you compliant with all government regulations.
Don't let the burden of collecting rent and security deposits prevent you from enjoying life. Contact PMI Cobb today to learn more.
