A June 2024 USA Today survey found that the typical U.S. homeowner spent $5,775 on maintenance and repairs within the last 12 months. Those who only moved into their new homes starting May 2023 even paid more than twice: a staggering $12,225!
As a Boise, ID, landlord, you could face the same expenses or even more if your tenants damage your property beyond normal wear and tear. Luckily, state and local laws allow you to charge security deposits to help cover such costs.
Keep reading to learn about these deposits and landlord tips for handling them.
What Are Security Deposits?
Under the Idaho Statutes, a security deposit is any amount a tenant deposits with their landlord for any purpose other than rent.
There's no state-enforced limit on how much deposit a landlord can require from their tenants. So, you can legally charge whatever you see fit. However, most landlords only charge the equivalent of two months' rent.
What Can You Use Security Deposits For?
You can use security deposits to repair tenant-caused damage to your rental property and its appliances, fixtures, and other equipment. If your previous renter left the property in a severely dirty condition, you can use part of the deposit to pay professional cleaning fees, too. In some cases, you may also be able to use a tenant's security deposit to cover their missed rental payments.
Things You Can't Use Security Deposits For
Let's say that after your previous tenant has left, you conducted a comprehensive rental property inspection. Everything in it, from its structural components to appliances, has normal wear and tear. So, you've determined that your rental unit and its contents only need regular property maintenance.
In that case, you can't use the security deposit to pay the maintenance and cleaning costs you incur. You also can't use it to pay for updates or upgrades to your property, as these aren't your tenant's responsibility.
The Refund Process
If you don't have to use a tenant's security deposit at the end of the tenancy, you must return it in full. If you have to spend a portion of it for purposes allowed by the law, you must return whatever remains.
Under Boise rental laws, landlords must also return security deposits in full or most of it if they don't renew the agreement due to:
- A planned substantial remodel of the property
- A planned demolition of the property
Landlords must also adhere to rental deposit guidelines regarding the return timeline. If the lease agreement doesn't specify a return date, you must refund the deposit within 21 days after the lease ends. For future leases, you can set and indicate a 30-day return period.
Simplify Managing Security Deposits
Security deposits can help protect your bottom line from tenant damage or unpaid rent. That's why they should always be part of your lease agreement.
To simplify handling security deposits and managing your Boise property, partner with First Rate Property Management. We've been around since 1994 and specialize in full-service property management solutions. Our leaders are investors, too, and highly active members of the National Association of Residential Property Managers (NARPM).
So, call us today! We'll happily share what we can do for you and give you expert landlord advice.
