You may not have known this, but fifty-two percent of the houses in Salt Lake City are renter-occupied. This means that over half of the population of Salt Lake City are renters as opposed to homeowners or landlords.
With such a huge statistic, many of these people know their way around security deposits. As a landlord, you should know as much as they do. If you're just learning about security deposits, you've come to the right place!
This article contains all the landlord advice you'll need surrounding security deposit laws. Read on, and you'll know everything you need to know!
How Much Should Security Deposits Be?
This will come as a relief to you- Utah security deposit laws do not have a required amount to charge for security deposits. However, an important one of our landlord tips is to avoid charging too much money. This will make you less likely to get tenants.
A good rule of thumb is that most tenants are prepared to have one month's rent set aside as a security deposit. In general, you should avoid charging more than this.
Most tenants will expect to pay the security deposit as they move in. Someone who is fully able to pay this should also do well on their tenant screening.
If you would like to charge less on your security deposit, you can. However, keep in mind that this is money to be set aside in case you need to repair damages. It's not money you should consider free to spend immediately.
What to Know About Security Deposits
As a rule of thumb, most security deposits are refundable. This means that you'll need to return them once your tenant moves out, provided they left the house undamaged.
The deposit must be returned within thirty days of the tenant's move, according to Utah law. If your rental property was damaged and you can keep the deposit, you must provide a written explanation as to why it won't be returned.
If you're keeping the deposit due to damage to the house, you should make sure you have records of prior rental property inspections available. These inspections are typically done before a tenant moves in. They'll provide proof that the house was undamaged before the tenant entered.
Other valid reasons to keep a security deposit are typically if the tenant owes you rent. This is less common than damage to the house.
Keep in mind that security deposits can be contested in small claims court. Make sure your reasons for keeping the deposit are airtight.
Reach Out to Us
Now that you're fully informed on how to handle security deposits, do you have more questions or concerns? Are you ready to hire a property management company?
If the answer to either one of these questions is "yes", then you should reach out to us! At Wheeler & Associates Management, we enjoy being able to help with any problems you might have.
All you need to do is fill out this form, and we'll get back to you as soon as possible with the service you deserve!