When you own a home and it’s time to move for a new job, to transfer out of state, or because you want to downsize to a smaller house or upgrade to a bigger one, you might assume that you need to...
What Is a Security Deposit? Does “Zero Security Deposit” Help Owners?
Owning rental properties comes with plenty of challenges, ups, and downs. There is a range of issues that investment owners must contend with and stay on top of to be successful.
Whether it's finding the best tenant, weeding out the bad ones, or dealing with other property management tasks, the work is ongoing. One such task is collecting and managing the security deposit. What is a security deposit? Can "zero security deposit" property owners?
Today our MHN property management experts have the inside scoop on this strategy to help tenants and owners.
Why Finding Good Tenants Is Crucial to Rental Property Ownership Success
As a property owner, you may face some setbacks when filling your properties with tenants. First, just finding people who want to rent at the price you're asking in the neighborhood where the property is located might prove challenging. With the economic issues of the day, not everyone is out looking to move or make a change.
So, once you have a few renter applications, you must ensure they are quality residents. Property owners can experience challenges and financial loss with "just anyone" living in the rental home. Some important things to consider when bringing a tenant into your properties are:
- Do they have a steady job?
- Do they have a clean background?
- Do they make enough to pay the rent?
These questions can help you assess whether you have the makings of a good tenant. However, a thorough tenant screening program is the best way to ensure you get the right people into your properties.
After finding the ideal renter for our property, it's time to collect the security deposit. However, this can push a good prospective tenant away in some situations.
What is a Security Deposit?
A security deposit is a sum of money new renters provide to the landlord before moving in. It lets the landlord know they are serious about moving in, and it's also used as protection against any damages that may arise during the tenancy.
In the past, a security deposit was usually the equivalent of one month's rent. So, if the rent was $1,200, the security deposit would be that much, too. However, more recently, some property owners ask for more than one month's rent as a security deposit.
Security Deposit Challenges for Tenants
Coming up with one- or two months extra rent in advance can be challenging for plenty of good tenants, especially in a fluctuating economy or during inflation. You might have excellent candidates who want to move in but are held back because they need help with a security deposit.
Rather than lose a good tenant, and be forced to let a less-qualified renter move into your rental property, MHN Property Management offers a different solution that helps renters get into properties while protecting property owners!
About Rhino Security Deposit
When you work with our San Antonio property managers, your tenants gain access to the Rhino security deposit system, and you will get peace of mind.
The Rhino system is also often referred to as "zero-security deposit" insurance because tenants can move in right away with no money upfront!
However, you might be wondering how you can be protected without a security deposit from tenants before they move in. That's where the Rhino system comes into play.
The zero-security deposit insurance is a security bond, which is essentially a line of credit that protects the property owner and can be charged as needed if tenant-related damage or other issues come up during the lease term.
We set the bond amount equal to two months' rent since many operating and repair costs have gone up for rental property owners. Therefore, property owners are more than adequately covered in case of an issue when a professional property management company uses this system.
In addition, the security bond can be charged up to four times the monthly rent in certain situations. For example, if you have a prospective tenant that would be ideal but doesn't have a credit history or doesn't have a solid work background, our zero security deposit plan protects you and your property.
What Are the Benefits of Zero Security Deposit?
Offering zero-security deposit insurance for property owners and tenants has several benefits. Here are a few of the best ones:
- First, it helps property owners get more protection for their properties.
- Properties will fill up faster instead of staying vacant (and losing valuable revenue).
- Tenants love the system because it's easier for them to get into properties.
The right property manager screens potential renters thoroughly and offers the best solutions to help place tenants faster while protecting owners. Our zero-deposit practice is reliable for residents and owners!
Let MHN Property Management Help With a Security Deposit
Make the tenant placement process simpler by working with MHN Property Management. Our San Antonio property managers will have quality tenants in your properties in no time, with proper protections in place to maximize your revenue. We manage all the security bond and deposit processes so that you don't need to worry about anything except getting paid.
Get in touch with our team for more information about how it works or our property management services!