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January 15, 2008
Security Deposit increase or not?
Hi,
This is my first time renting out an apartment and I wanted to know when you raise the rent do you also ask tenant to pay difference in security deposit to reflect rental increase?
Thanks!
Comments
yes.
Posted by: Ysabelle at January 15, 2008 1:34 PM
no.
Posted by: guest at January 15, 2008 1:55 PM
I haven't done this as a landlord, but when I was a renter the big management companies always made me pay additional security when the rent increased. I guess if you trust your tenants and you're happy they're renewing, maybe it's not such a big deal. If you're increasing the rent because you've made improvements that are at risk of damage, obviously you should collect the extra security.
Posted by: gowanusaurus at January 15, 2008 2:02 PM
If you have good tenants, you shouldn't bother. And as long as they are good tenants, you should be hesitant to raise the rent unless expenses associated with the apartment have dramatically risen.
I have tenants from HEAVEN, and I wouldn't dream of raising their rent but if I did, I would NOT ask for additional deposit.
Posted by: guest at January 15, 2008 2:26 PM
No. Im a landlord
Posted by: arial at January 15, 2008 3:27 PM
I have always been asked to pay an additional amount in security when my rent is increased, so I don't think its unusual.
Posted by: guest at January 15, 2008 4:07 PM
As a tenant, I had no idea that we held so much power. I would expect to pay an addition to the deposit so that it matched the new monthly rent. But, I have always lived in older RS buildings.
Posted by: guest at January 15, 2008 4:08 PM
Yes. It has nothing to do with being nice, trust, or whether your tenants are good tenants. It's a matter of having coverage for the current state of the rent. It's much simpler to keep it simple and stick with a system, than to weigh each situation on some personal basis. You never know which tenancy will turn bad, and believe me, you never know. Be friendly with your tenant, treat them well, take care of your building, and don't give yourself any exposure you don't need to take on. No tenant of mine has ever been surprised at keeping their security up to date over time. Good luck.
Posted by: guest at January 15, 2008 6:55 PM
no
Posted by: guest at January 15, 2008 7:31 PM
No.
You cannot raise the security deposit just because you raised the rent.
Sandy
Posted by: guest at January 16, 2008 12:34 AM
Yes, Sandy is a moron.
Posted by: guest at January 16, 2008 1:01 AM
^^and you're an idiot. Name-calling doesn't change the answer which is no.
Sandy
Posted by: guest at January 16, 2008 3:21 AM
I've never been asked as a renter to give them $200 extra when the rent was raised by $200. That's ridiculous and nitpicky.
Posted by: guest at January 16, 2008 7:57 AM
I believe you can raise the security when you raise the rent because a new lease is in effect. When I lived in a large building my rent and deposit were increased at year-end. As a brownstone landlord I would never do this to a good tenant.
Posted by: Johnny at January 16, 2008 10:17 AM
Thanks for all your comments.
Posted by: nako at January 16, 2008 10:46 AM
Definitely yes. 6:55 above has the right idea. As a landlord, protecting yourself doesn't have to be unfriendly or nit-picky.
Posted by: guest at January 16, 2008 2:49 PM
I'm a renter and when our landlords raised our rent (pretty minimally), WE suggested we should match the raise on last month & security deposit. It just made sense. We want to stay in our place a long long time. And when we finally leave, we won't have to worry about what amount we're supposed to get back -- we'll just always keep it pegged to our current rent. Yes, we'll lose a few bucks on interest, but we love our landlords -- it's a good gesture & it keeps the books current. Maybe I'd feel differently if I was renting from a giant management co.
Posted by: guest at January 16, 2008 4:49 PM
To 4:49pm
If you were renting from a giant management company, you would have to pay the raise for the rent and security deposit.
They do it to keep the accounts straight.
It is all very impersonal.
Posted by: Ysabelle at January 16, 2008 5:26 PM
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