California is one of the top states with a higher share of renters. Like many states, they have legislation to protect both landlords and tenants. One of the laws covers security deposits.
When people lease rental properties in Merced, CA, there are several costs that everyone should be aware of. These include application fees, move-in fees, first and last months’ rent, utility bills, parking fees, storage fees, etc.
A person may not know what a security deposit is and what it’s for. Some people feel it’s another way landlords can extort money from a renter. The truth is security deposits are a level of rental protection for property owners.
In this article, we’ll answer questions for Merced landlords about this one-time payment. Keep reading so you’ll be prepared when it’s time to sign your first tenant lease and collect rental fees.
What Are Security Deposits?
A security deposit is a sum of money that a Merced landlord collects from a tenant that is not the tenant’s rent payment. Security deposits protect landlords when the tenant breaches the terms of the lease or causes damage to the rental property.
California has strict guidelines for how much a landlord can set for security deposits. Having state protections prevents landlords from discriminating against potential renters. The guidelines include the following:
Unfurnished Rental Properties
In California, the rent is determined by whether the property is furnished or unfurnished. If the property is unfurnished, the landlord cannot charge more than two months’ rent.
Furnished Rental Properties
On the other hand, a furnished apartment can result in a maximum of three months’ rent for the security deposit plus the first month’s rent.
When Are Security Deposits Due?
Expect renters to pay the rental security deposit when approved for the rental property and sign the lease. As the Merced landlord, you will determine the form of payment.
If you use a property management company, they will most likely require online payments via a portal. The fees are then held in a trust account.
Remember, landlords may have other rental fees associated with the lease agreement. These fees can include utility deposits, key deposits, pet fees, etc.
When is the Deposit Returned?
Rental security deposits are used as rental protection. In California, Merced landlords have 21 days to return the deposit. Keep in mind your deposit is subject to specific fees that include the following:
- Damage to the unit
- Outstanding balances
- Pet damage
- Damaged/stained flooring
- Deep cleaning
This list is not all-inclusive. Also, damages are considered beyond normal wear and tear. For example, you cant withhold rental security deposits to replace a door because the doorknob is broken.
Do You Need Property Management Services?
Property management providers know the legalities of security deposits. At Chosen Property Management, we assure our clients that all California rental laws are followed.
We'd love to hear more about your Merced property. Give us a call at 209-677-4477, or contact us online.
