Landlords have to face unique challenges. One is finding the right balance between tenant rights and protecting themselves. One area affected by this is security deposits.
You collect security deposits for protection. But you must follow the laws in Pennsylvania when handling them.
Are you familiar with the laws and best methods for handling them? You'll need to be if you're not.
Here is a guide explaining the primary things to know about security deposits in Pittsburgh, Pennsylvania.
Reasons to Collect a Security Deposit
With effective techniques, you'll hopefully find great tenants. Of course, outsourcing your tenant screenings improves your chances. But you can still end up with less-than-stellar tenants.
Because of this, you need to collect security deposits for every rental property. The purpose is to have some money from the tenant to cover damages.
Without the deposit, you'll have to pay for the damages yourself. You may still have to pay to repair things, even with collecting deposits. However, the deposits offer some protection to offset the potential damages.
Amount to Collect
Many landlords wonder how much to charge. To determine the answer, you must know the security deposit laws in Pennsylvania.
Pennsylvania has unique security deposit laws relating to the amount you can collect. The rule says you can collect up to two months' rent for the deposit.
For example, you can charge up to $1,800 for an apartment you rent for $900.
The rule also states you can only collect up to one month's rent after a person lives in a rental property for one year. This means you must return part of it if you charged more than one month's rent for the deposit.
This rule can make it confusing for landlords. Therefore, you might simplify your policy by only charging one month's rent from the start. You can also simplify things by hiring a property management firm.
Rules to Follow When Returning Security Deposits
The other important law to understand relates to returning security deposits. When someone moves out, you'll have three options:
- Return the entire deposit
- Return a partial deposit
- Keep the entire deposit
If you owe the tenant money from the deposit, you must return it within 30 days. The 30-day timeframe begins on the day they move out.
You can only keep money from the deposit if the tenant damages the unit. You'll need proof of damage. You can use a move-in checklist as a comparison if you have one.
You cannot keep money for routine wear and tear. You must also inform the tenant of the reasons you decide to keep money from the deposit.
Seek Help From a Property Management Firm
Security deposits provide protection for you, the landlord. Collecting one from every tenant is critical for this purpose. However, following the law is also crucial.
Many landlords turn to property management firms for help with security deposits and other landlord advice. You can, too!
The Burgh Property Management operates in Pittsburgh. We specialize in excellence in all our services. Although we're part of a larger franchise, we're locally owned and operated.
Get in touch with us today to learn more!
