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Understanding Your Security Deposit

June 24th, 2015 garnerproperties
Security Deposit

A common practice at many rental properties is requiring a security deposit from new tenants. This deposit is intended to be returned to tenants when they leave, except for deductions for any acceptable expenses that the landlord incurs for cleaning or repairing tenant-caused damages or other approved purposes. There are certain guidelines in each state that cover how property owners and landlords need to handle deposits.

In Michigan, laws permit a landlord to ask for up to 1.5 times the monthly rent as a deposit. This means that if rent is $1,000 a month, the security deposit cannot be more than $1,500. In addition, funds accepted as a security deposit must be placed in a bank or other financial institution, and landlords must provide information on where the institution is to the tenant within 14 days of the move-in date.

Following the end of tenancy, the landlord is permitted to use the deposit to pay for damages in excess of normal wear and tear. The security deposit may also be used to make up late rent, early termination fees or unpaid utility bills on the property. He or she must mail the tenants an itemized claim list for all charges that are taken from the deposited total – along with a check for the remaining balance – within 30 days of the move-out date.

Security DepositIndiana law is not as regulated by comparison. For renters in Indiana, there is no state maximum or deposit requirement for security deposits. However, the law does list the acceptable deductions from the security deposit on moving out. These include paying back rent, damages caused by the tenant or by the tenant’s failure to perform duties listed under the rental agreement, as well as fees for any unpaid utilities. The tenant is entitled to receive an itemized list of any damages from the landlord within 45 days of moving out, however, with the balance of the security to be paid by money order.

As long as tenants keep their rental home or business space in good, clean condition, and leave the space free of damage beyond reasonable wear and tear, receiving a full return on a security deposit should be a very straightforward process.

Securing a new space is also an easy and straightforward process with Garner Properties & Management Co. Our extensive database of for-rent properties in Detroit and Indianapolis includes dozens of great homes in neighborhoods in both cities. Start your search online or contact us today to find your next home!

Written by garnerproperties

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