As far as Norfolk property management is concerned; handling of security deposits paid by tenants is one of the most misunderstood topics-by managers and landlords alike. For one; the rules in each state regarding security deposits are different. Some States also tax landlords on this amount, while others do not. It is critical to know and understand the rules in your state regarding this issue.
Mishandling the security deposit amount can also get landlords and property managers in legal trouble. There are states which have imposed limits on this amount and it is essential to conform to these guidelines.
The holding of security deposits also needs to adhere to State laws. In many states, a separate banking account may be required to hold the deposit amounts for the benefit of the tenant. In states like Massachusetts, there is a five percent tax per year on this amount collected.
It is thus very important to note the condition of the property before the tenant has moved in. Make sure that you walk through the property with the tenant so you can both assess the situation. Ensure that you get the tenant to sign a legal document regarding all your observations made during this visit. This way, pre-existing damage can be recorded and there are no issues at the time of the tenant’s departure.
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KRS Holdings | 2000 West Club Lane, Richmond, VA 23226
Phone (804) 554-3197 | fax (804) 282-4757