At Assured Management, we have been successfully managing homes for rent in Lakewood, Colorado since 1987. Our mission is to provide quality property management services to rental property owners and their tenants while managing single family homes in Littleton and the west side of the Denver metro area. Today, I’m sharing tips and best practices on rental deposit accounting.
Landlords know that collecting additional funds from new Lakewood tenants to be held up front is a good idea. Your lease or rental agreement with the tenant should specify how much you’re collecting, what may be charged at move out, and how the deposit will be returned to the tenant. The most important tip I can give you is to read up on Colorado law regarding the collecting, holding, and dispersing of deposits. It can cost you dearly if you don’t understand the law, and you mishandle a tenant’s deposit. Remember, the deposit belongs to the tenant and any charges to it must be legally documented and accounted for. In Colorado, a full accounting of the deposit must be provided to the tenant within 30 days of that tenant moving out of your Lakewood rental property. It’s a good idea to do this even if there are no charges.
Another important tip is to keep your receipts. Keep a copy of all the expenses you incurred while making the Lakewood property ready for new tenants. Any expenses from repairing tenant-caused damage after move out will be relevant. Photos and videos that reflect the condition of the home before tenants moved in and after tenants moved out can be invaluable. The management team at Assured handles every deposit accounting as if it was being presented as evidence in a court case.
Don’t charge for normal wear and tear. It can be upsetting to see the condition of your rental property after a tenant has vacated. Sometimes, it’s difficult to determine what is damage and what is normal wear and tear. Be sure not to charge for damage caused by a tenant using the property for its intended purpose.