Turning Rental Problems into Real Estate Profits

by | Sep 8, 2023

Security Deposits

We’re going to start with security deposits. This is a very hot topic. There are some federal guidelines. The landlord-tenant law—the primary body of law—came out, I believe in 1957. It’s known at the Landlord Tenant Act, and most states have adopted their own versions now. This is different than protected classes. With protected classes, you can’t change what the federal government mandates. You can only add to it. When it comes to security deposits, the states are actually allowed to interpret for themselves how they manage security deposits or how you, as an owner, should manage security deposits.

On the website, Landlord.com, there is a guide to what happens with security deposits and how you handle them. It’s a state-by-state guide. Just pick your state, pull it up and look at it, so you can determine what you should do, relative to your security deposits.

You have to know this, because the reality is, if you don’t know this and you do something incorrectly, chances are very, very good the law is stacked against you.

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