Security Deposits At Beginning Of Tenancy
February 8th, 2007
Renters often have questions about the amount of the security deposit required at the beginning of their tenancy. The security deposit cannot exceed two times the monthly rent for unfurnished units and three times the rent if the unit is furnished. If the renter has a waterbed, an additional amount not to exceed one-half of the rent may be required.
Property managers sometimes use different names for a security deposit, such as last months rent, cleaning deposit, key deposit or pet deposit, to name a few. Regardless of the name, the total amount of any and all deposits cannot exceed the security deposit limitations explained above.
The security deposit limitation does not apply to any application or screening fee usually charged when applying for a rental. However, this fee cannot exceed $30 plus any increases in the Consumer Price Index since January 1, 1998. That amounts to about $34 in 2003.