Pre-paid deposit : ezLandlordForms

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Sandra E

started a topic over 14 years ago

What exactly does "pre-paid deposit" refer to? And isn't a "security deposit" something to pay for repairs of damages other than the normal wear, and not what is to be applied for rent such as for 1st and last months rent? If monthly rent is $1800 can I ask for 1st, last($3600 + 1800 security deposit + 200 pet deposit = $5600 for move-in? My rental is in Redondo Beach, California. SE in Calif

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Linda M

said over 14 years ago

In Maryland, can I charge 1st and last months rent, plus a security deposit of the amount of one month's rent? So, if the rent is $1,100 per month, can I ask for $3,300.00 to move in?

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Stan M

said over 14 years ago

Hi Sandra....All pre-paid deposits, including pet deposit, are considered security deposits. In CA, you are limited up to 2 months rent or 3 months if furnished. In your case (assuming it's unfurnished) you can only collect up to $3600.00. That being said, I would reconsider calling 1/2 of the deposit as Last Months Rent. Let's say tenant live there for 5 yrs and rent has increased to $2500.00/month (yes, it's possible in CA). After 5 yrs, tenant decides to move. Since you designated part of the $$$ collected as last months rent, you would be losing $800.00. Also, this would leave you with only $1800 for damages, if any. If you allow pets, have a statement stating that they must obtain insurance and that they will be responsible for having the property fumigated and deodorized.

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Doug K

said over 14 years ago

I read that you can charge as much as you want for your security deposit in California. The real question is, what will the market bare? What are similar places charging?