When Rent Increases, What Happens With Deposits?With the real estate situation being what it is, many people are opting to rent apartments and rent out houses instead of becoming homeowners. Sure there are great deals on homes, with plenty of inventory but not everyone is sold on the American Dream. With owing a home comes a lot of responsibility that’s much more than being able to pay the monthly mortgage. Think about home maintenance, home repairs, closing costs and everything in between. Even the uncertain employment situation is making some nervous.
When renting a place, most landlords ask their tenants to provide them with the first and last month rent payment in addition to a deposit. This deposit is asked to ensure that the place is in the same original condition it was given to their tenant. From year to year, a landlord can ask for an increased rent payment. But what happens to the last month’s payment and the deposit? Are those affected as well. Some states have laws that require the tenants to increase their last month’s payment and the security deposit to equal that new increased rent.
If the landlord doesn’t ask a tenant to pay the difference immediately they can’t ask for that extra money when the tenant moves out. In some states, the landlord has to place the deposit and the final month’s rent in interest bearing accounts with interests paid to the tenant, so it’s possible that a tenant is owed money when he or she is ready to move out.
There’s also a specific time period after which a landlord has to return the security deposit or present the tenant with a written notice of the damages that were done to the apartment or house. In Florida for example, it’s 15 days after the end of the lease if the tenant will be getting his or her full deposit back. If there are damages and a written claim, then it’s a month after the termination of the lease.
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