Important tips to avoid trouble on refunding tenancy security deposit

Tips towards Renting property
Tips towards managing tenants

When tenant vacates, the trouble starts with the refunding tenancy security deposit and deduction towards any damages. Many a times, all this left bad taste between owner and tenant,  and neither seems to be happy at the end.

So, how can one avoid situation that arises towards refunding of deposits and ensure transparency maintained in calculating deductions. Here we post 6 tips that can possibly help in better interaction between both parties and reducing hassles at later stage.

Tip 1: Draft a clear rental agreement. Ensure that the rental agreement is drafted with clarity of refund/deduction of the security deposit. It should clearly mention what kind of deductions to happen (e.g., painting charges, damage to property at what extent).

Tip 2: List down inventory/fixtures given in the property (with model number) and condition of the same.

Tip 3: Take clear pictures of the property before handing over the keys and share images with tenant. Ask your tenant to also note for any item that he noticed as need repair/replacement. Owners should keep such document recorded by both the parties. This can be used if needed in future for cross reference.

Tip 4: Add in your agreement the key’s details also  or get acknowledgement for the same as well.

Tip 5: During vacating, ask tenant to either get his coordinates fix up towards cleaning /painting / damage or it will be assessed by a vendor chosen by you and based on the quotation, it will be deducted from the security deposit.

Tip 6: Keep tenant informed at very beginning that the refund will happen only after possession is returned. Also, unless tenant vacates the premises, it is difficult to assess the condition of damage/repair/painting need (if any).

Though this tips do not guarantee resolution completely, but it surely  helps in avoiding situations that go bad at times. Apart from all this, you can look at hiring property managers who can help in managing tenant and keep a check on this detail list for you and help in safeguarding your interest.

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