The market for real estate in Saratoga Springs is booming. It's a popular and safe travel destination. Affordable housing initiatives cut rent down to $1,700 per month.
More properties mean more opportunity but also more risk. Not all properties are viable, and you may see a tenant ruin them or refuse to pay.
Security deposits are an extra layer of insurance against this. They protect your investment and help keep it profitable.
Read on to learn three benefits of security deposits in Saratoga Springs.
1. They Protect Against Damage
Landlords in Saratoga Springs aren't responsible for all maintenance tasks. Tenants must cover basics such as taking out the trash and meeting code regulations.
Failing to follow these standards can cause major damage to your property. Security deposits prevent the financial devastation this causes.
They don't cover normal wear and tear such as peeling paint, surface scratching, or small holes. They handle more serious forms of damage such as:
- Large holes
- Cracked windows
- Major carpet stains
- Missing or damaged hardware
- Unauthorized modifications
2. They Cover Unpaid Rent or Utilities
New York has the largest percentage of residents behind on rent in the US. 20.52% of the 5,191,102 adults in rental properties have rent debt.
Landlords may become hopeless when this leaves them behind on income. There are strategies to help ensure tenants pay rent on time including tenant screening, online rent collection, zero-tolerance policies, and hiring professional Saratoga Springs property management. They're useful, but they're not foolproof.
A security deposit helps cover any remaining unpaid rent. This includes the cost of filling vacancies when tenants leave in the middle of their lease without paying their final month's rent.
Landlords or property managers in Saratoga Springs may also allocate utility bills to tenants. A security deposit cushions the blow when they refuse to pay or leave before the end of their lease.
3. They Encourage Trust and Prevent Legal Disputes
A lease is a contract between a tenant and a landlord, but a security deposit adds even more weight to that agreement. It's a bond of trust to keep the property in habitable condition. Clear communication is key, and so is careful documentation.
Outline the terms of the security deposit. It should show how much the deposit is, the deadline for payments, and when it can be withheld.
Give each tenant a move-in checklist so that they can outline the condition of the property. This makes it easy to compare its condition with how it looks when they move out.
Keep a record of any deductions from the security deposit. Gather receipts for any repairs or replacements.
A Saratoga property management company can handle all of these steps for you. They make it easy for you to answer any questions the tenants have about the deposit. They also serve as evidence if any disagreements between you escalate enough to go to court.
Who Can Manage My Security Deposits?
Security deposits protect against property damage from tenants as well as unpaid rent or utilities. They also foster a better relationship and help with legal disputes between tenants and landlords.
Venmo Properties is a property management company serving the capital region of New York. Our mission is to provide hassle-free, professional, and reliable service for owners and tenants. Contact us to start maximizing your property portfolio today.
