Security Deposit

Question 1

What can be deducted from a resident’s security deposit?

Answer 1

• Unpaid rent
• Utility charges
• Deductions for damages and cleaning

Unpaid rent and utility charges are common reasons for deductions from the security deposit.

Question 2

When a resident is behind on rent, what can the property manager do?

Answer 2

Deduct what is owed from the security deposit

This deduction occurs at the time the resident moves out.

Question 3

What happens if a resident has an extended stay after the move-out date?

Answer 3

Rent can be prorated for the number of days stayed and deducted from the security deposit

Follow state and local laws on application.

Question 4

What is the consequence of providing inadequate notice as required in the lease?

Answer 4

Resident may have to pay the full amount of rent for the balance of the notice period

If the apartment is re-rented during the notice period, most states will not allow charging the old resident for the period of occupancy by the new resident.

Question 5

What occurs after a court eviction in many states?

Answer 5

A money judgment is issued, and the resident is ordered to pay rent through the date of the judgment

This allows the property manager to subtract from the security deposit the amount of the judgment and prorated rent from the date of the judgment to the time the resident leaves.

Question 6

True or false: Deductions for damages and cleaning should be taken out of the security deposit last.

Answer 6

FALSE

Deductions for damages and cleaning should be taken out of the security deposit first before anything else is deducted.