Should I take a security deposit?

Absolutely! Without a security deposit to lose, many Tenants will not care how they treat your property.

Depending on the location of your rental, you may request first, last and security or just one month's rent. Find out which is typical in your particular area.

The security deposit is intended to mitigate damage caused by the Tenant during their Lease beyond normal wear and tear; it is not intended to upgrade your rental! The security deposit can also be used to cover lost rent, but be careful because there are strict guidelines. You must make reasonable efforts to re-rent the unit. This may include online and/or newspaper advertising, signs on the property or hiring a management company.

Disputes over security deposits can get sticky, so keep detailed notes, repair receipts and pictures. You must follow the laws regarding the release and use of the deposit.