How Do Security Deposits Work Exactly?

How Do Security Deposits Work Exactly?

Sunny Albuquerque is one of America's leading renting markets. The "average rent for an Albuquerque apartment is $1,170." Yes, Albuquerque's 200-plus neighborhoods offer chances of becoming a landlord. 

But before signing any rental agreements, read this article for free landlord tips. And the first tip is to add security deposits to your Albuquerque rental agreement. 

This guide underscores why successful landlords shouldn't enter any rental agreement without secure rental deposits. 

And if you're a landlord having to pay for property damages, this guide is also for you. Arm yourself with rental investment knowledge. Add security deposits to your property management duties. 

Learning About Security Deposits 

Security deposits are an upfront fee that a tenant pays a landlord before moving into the rental property. Albuquerque landlords can assess rental deposits, but they don't have to do so. Collecting security deposits is part of our rent collection services.  

Rental deposits help offset any lost rent. Security deposits also help to cover any property damage. Albuquerque tenants are only liable for the damage they caused to the property. It is illegal to deduct other property damages from rental deposits. 

Albuquerque landlords are responsible for routine property maintenance. And yes, we can assist landlords with property maintenance. Also, landlords must provide tenants with an itemized list for security deposit deductions. 

Albuquerque law also requires landlords to return a tenant's remaining security deposit and list within 30 days. The 30 days begin when a rental agreement terminates. Failure to return rental deposits might lead to the loss of the security deposit.  

Also, landlords who don't return security deposits might lose the chance to sue tenants in the future. Paying a tenant's legal fees might also be in order.  

In annual rental agreements, rental deposits typically equal a month's rent. However, Albuquerque landlords can set higher deposit fees for leases greater than a year. But security deposits "greater than a month's rent might have payable interest to the tenant." 

Security deposits count for last month's rent if both parties agree to exit the rental agreement. 

Meeting the Requirements of Security Deposits 

Albuquerque landlords can request security deposits for tenants' pets. However, the cost of service animals doesn't apply to rental deposits. It is because new Mexico considers these animals essential to tenants.

The tenant, however, is responsible for any damages the pet causes. Rental deposits also cover the costs of any rental furnishing damages. Tenants paying security deposits agree to these terms: 

  • Abiding by the rental terms
  • Keeping the property clean
  • Not damaging the property
  • Maintaining the peace

A tenant's guests must also abide by the rental agreements. If these guests damage property, the damages come out of security deposits. 

A tenant's criminal activity might warrant terminating a rental agreement. Landlords don't have to return rental deposits in these circumstances. 

More on Security Deposits

Security deposits are taxable income. However, this is not the case if Albuquerque landlords have to repay rental deposits. 

Discover why investors consider us Albuquerque's premier property management service. We provide expert tenant screening services to help find the best tenants. Reliable tenants increase your rental revenue stream. 

You can visit our resources section to download guides about our exquisite services. 

Contact us today for our rental analysis services. We also provide expert marketing services to attract the right tenants.  

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