I have taken a deposit on my rental, but the applicants changed their mind. Do I have to refund the deposit?

First off, understand that there is a difference between a 'deposit' and a 'holding fee'. A 'deposit' is generally used to describe funds received after an applicant has been approved to reserve a unit until their move date. If you have accepted a deposit and the Tenant changes their mind, you must provide the applicant with an itemization of any deductions (advertising, lost rent) within 30 days of receipt of funds.

A 'holding fee' typically describes funds held to reserve a unit until they are approved and have met all requirements necessary to rent the property. This fee can range from $200-$500 depending on the location and monthly rent and is usually forfeited in the event the applicant changes their mind (but returned in the event you deny their application).

Make sure that the applicant understands whether they are paying a fee or placing a deposit.

I'm buying a property with a Tenant in place, can I raise the rent?

No. You must honor the current lease that is in place. If you wish to raise the rent when the lease expires, let the Tenant know in writing 30 days prior to expiration.

My Tenant lost their parking sticker, who should pay for the replacement?

In many communities and developments, the HOA requires each resident to display a parking sticker in their car window. It is good practice to provide your Tenant with one at move in (also when the stickers are changed or renewed) however it should be the Tenant's responsibility to replace it in the event it is lost or damaged.

Clearly outline this issue in your lease so that there are no misunderstandings down the road.

Should I accept a personal check at move-in?

No, make it clear when discussing the move-in procedure that you can only accept certified funds. (Money order or cashiers check.)

The worst thing you can do is accept a personal check to cover a Security Deposit and first months rent, only to have it bounce. When this happens, you are stuck with a Tenant and no funds to cover eviction, damages or bank fees.

A good rule to follow: schedule the Lease signing during regular banking hours only. This will allow them to run to the bank if they 'forgot' the certified funds. If they hesitate, chances are they knew the check would bounce to begin with.

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.