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Security Deposits

Security-Deposits-1

Companies specialized in property management in Saint Louis Mo are regulated by the state of Missouri, and they are required to hold the security deposits in a bank account that is separate. This is one of the reasons why they require tenants to pay their rent and make deposits on a separate check at a lease signing. This helps keep the record straight. The state of Missouri has regulations regarding security deposits that help protect both the property owner and the tenant. However, one of the things most property owners fail to realize or won’t accept is that the security deposit belongs to a tenant. The property owner may hold it, but it still belongs to the tenant.

For instance, you cannot charge a tenant for usual common wear and tear. The usual wear and tear is a subjective topic and if challenged by property owner, they need to be prepared to defend their assessment. A good suggestion is to talk with other property owners that have also faced the same issues to learn more about the experience they had. Another regulation also states that security deposits can be used for the last month’s rent. The tenant may not use the security deposit to pay for the rent of the last month unless the property owners agrees to that. And if they try to, then the rent is considered to be late and late fees are charged. This allows companies specialized in property management in Saint Louis Mo to bill them for the late fee, and it will show in their system that the rent for last month was not paid, and they have an outstanding balance. You as a tenant might say that it does not matter, you probably may not get the money anyway, but if you are used as a reference by another tenant, you will not be giving a very good reference.

The security deposit is a tenant’s money that a property owner is holding in escrow. Property managers are so particular about the money of the tenant that some of them do turn down some property managers that won’t allow them manage the tenant’s money. The state regulations states that the security deposit should be refunded back to the tenant or get an explanation of the reason why the funds was held back within 30days of vacating the property. If this does not happen, the tenant may sue for amount twice the one owed to them.

What should be the fee for security deposit be? The state of Missouri does not allow a fee more than twice the rent fee. Some property managers do post the minimum security deposit on their website. Some may just charge the fee on their website or may charge more when there is a problem with the tenant’s background check.

Also posted on LinkedIn at https://www.linkedin.com/pulse/security-deposits-edward-o-daniel

Find out more about St. Louis Property Management at: https://www.stlouispm.com.

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