How to Determine Extent of a Security Deposit Refund

As a landlord, you will have to deal with the subject of a security deposit refund more than you would like to. Every time a tenant leaves, you will have to deal with the security deposit refund with them. They will more than likely want the entire deposit back although that is rarely realistic. You want to be fair, but you want to cover yourself financially as well. There is a happy medium that you have to find with security deposit refunds. Here is how to determine the extent of a security deposit refund.

Lease Agreement

The first thing that you will want to look at is the lease agreement that was signed by you and the tenant. A good lease agreement will outline everything that could possibly happen in regards to a security deposit. It will put in writing exactly what should happen when a tenant moves out. Make sure that you are within the rules of the agreement that you had with the tenant before you go any further.

Determine Necessary Repairs

When you can get into the property, you need to assess the property for damage. Determine exactly how much it will cost to repair the property. Get itemized estimates that you can show to the tenant. From there, deduct the amount of necessary repairs from the deposit and give them the rest. 

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