How to Handle the Security Deposit by Blackbird Realty and Management, Inc.
Channel: PURE Property Management of Nevada
Date: 23/06/2020

In this video, George Trombley talks about the tenant’s security deposit and what you’ll need to do with it. He will also give details on how to protect it. 
https://www.lasvegasproperty.management/?tcid=VI

Nevada law requires property managers to have two separate trust accounts. One is to hold the owner's operating funds, and another one is to hold the tenant's security deposit separate from the owner’s funds. This is done because the security deposits belong to the tenant and not to the owner. When a tenant moves into the unit, you collect the deposit upfront. When the tenant moves out of the unit, you return the deposit. You have 30 days to do this, and if you don't return it within 30 days, then the tenant is entitled to the full deposit back without any offset. 

Some of the items that you can charge against the security deposit are unpaid rent or repairs that are needed because of the tenant's negligence. If the tenant broke a window on the way out, that would be a reason to charge the deposit. The tenant didn't return the gate remotes or the garage door openers. Those are items that can be charged against the deposit. But you can't just charge stuff against the deposit because you didn't like the notice that he gave you or that you felt that he needed to be taught a lesson. That's just not allowed. Any charges to the security deposit, if contested will end up in court. When it gets in court, the judge is going to look at the statute and it essentially is going to have to pass the reasonable person standard. 

So, is it reasonable to charge for a broken window? Absolutely! Is it reasonable to charge because you didn't like the way the house smelled when he left? Probably not. You don't know that the tenant made it smell bad. You're just speculating that he did. Remodeling the property cannot be done off with the tenant security deposit because it's not his duty to remodel your home after they leave. The tenants lived in a house for two or three years, charging the tenant to paint the house is not going to be allowed. It's not normal to do that. You rent a house to a tenant; you should be expecting normal wear to occur. 

All wear is damage, but the damage that can be charged to a security deposit is damage that occurred because the tenant was negligent when he lived in the property. Maybe you should expect that he would hang a picture on the wall of the property. Therefore, it shouldn't be a big problem to fill the tiny little hole left by a nail. It should be normal. So be reasonable when you're dealing with the tenant security deposit. It's not an insurance policy for you that your property will be returned the same way. If you rented a car from Hertz and you turned it in after driving it for 3,000 miles, they don't charge you for an oil change or the fact that you wore down the brakes. The same rules apply when you're dealing with a tenant security deposit in the state of Nevada.

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Blackbird Realty and Management, Inc.
1810 E Sahara Ave Ste 112, Las Vegas, NV 89104, United States
Phone: +1 702-903-3556
Click: https://www.lasvegasproperty.management/?tcid=VI

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