There are more than 20 million rental properties in this country, which means a lot of people rent instead of owning homes.
If you're a landlord, this is good news because it means that you'll always have people contacting you for rental properties.
As a landlord, you're entitled to require security deposits when new tenants move in. When they pay this money to you, you'll have to give them a security deposit receipt.
What information should you include on this receipt? If you're wondering the answer to this question, we've got you covered. Continue reading to learn more about what to include in this crucial document.
The Tenant's Name and Address
Before learning what to include on a security deposit receipt, you might want to learn more about security deposit definition. In other words, what is a security deposit?
The answer is simple. A security deposit is money you hold from the tenant that provides compensation to you if the tenant breaks the lease or damages the property.
When you require a security deposit for rent, you'll need to provide a receipt to the tenant that you collected this money from them.
The first thing to include on the receipt is the tenant's name. You'll also want to include a description of the property they're renting from you. You can use the address or apartment number.
One thing to consider, too, is making sure you perform thorough tenant screenings before approving applications and accepting payment for them.
The Date the Tenant Paid It
The next thing to include is the date the tenant paid the deposit. Including the date is vital, as it tells the approximate date when the tenant moved into the rental property.
The Amount They Paid
The next vital thing to include is the amount the tenant paid for the security deposit.
The tenant might pay you the rent for the first month and the security deposit. If so, you'll need to provide two different receipts for each of these payments, as they're both for different purposes.
A Security Deposit Refund Receipt Is Also Essential
The last thing to know is that a security deposit receipt is not the same thing as the receipt you give when a tenant moves out. When a tenant moves out, they'll want their security deposit returned.
You must legally give a security deposit refund to the tenant. If you decide to withhold some of the money, you must place it in writing. You must also include the reason you withheld part of the security deposit.
Learn More About Security Deposit Receipts
After reading this, you'll likely understand the purpose of a security deposit receipt and how to make one. Providing these receipts to your tenants is vital, as it gives your tenants proof they paid a deposit.
If you own rental properties in Utah and need help managing them, contact us. We offer property management services and can help you with any of the tasks you need. Call us today or visit our website to learn more.
