Pros and Cons of Security Deposits

rmason

Although we currently don’t take a security deposit from our tenants, we think it may be a good idea going forward.  We can see a security deposit taking care of locks and keys not returned, cleaning up expense of tenant leaving a dirty locker especially when one walks on you.  Those of you who use security deposits what are their pros and cons?  How much is your security deposit, how do you refund deposits to customers – cash, put back on credit card??.  Thanks, and have a Happy New Year!

i43storage

I take one month's rent as a security deposit.  It almost eliminates any junk left behind.  I refund by check - much easier bookkeeping than returning it on their credit card in my opinion.  I can't think of any cons other than needing to cut the check and mail it back.  

LADYLIFT1

We refund by check also.  Easier to track. Also does decrease stuff being left behind 

OHS

I continue to collect security deposits.  I return by check and I include a printed refund receipt in with the check with a hand written "Thank You!"   Very seldom do I need to keep the security deposit but it does help when the tenant is aware they will get it back if everything cleaned out and broom clean.