In short, last month`s rent is exactly this, a one-month rent collection that must be used to pay the monthly rent due during the last month a tenant resides in your Columbia rental building. This money can only be paid on monthly rental fees, whether they are recovered directly by you or by your property management company. Last month`s rent is the money your tenant paid to live on your site. The surety is your financial protection against unforeseen non-payment or damage. It is up to you to decide to collect last month`s rent from your tenants at the beginning of their rental period. Just be sure to order and use the help of your favorite Howard County property management company, Bay Management Group, to help you develop a lease that will clarify all your leasing procedures to avoid unnecessary confusion at home and at your client`s. Landlords are often first and last month collecting rents when they move in. This money can only be used for rental and is not considered a security deposit. If the rental agreement does not explicitly state how tenants should apply their rent last month, it is up to tenants to contact their landlord on how to use it. States have different rules for managing security deposits.
Some require homeowners to deposit security deposits into trust accounts and have specific rules as to who receives interest on those accounts. Be sure to review the laws of your state and municipality regarding deposit management. Yes Tracy, with a month`s rent kept as collateral a landlord is in danger that the tenant will skip last month`s rent and leave the premises in forefeiture. Security does not cover the month and unpaid damages. This problem is caused by the security restriction in the Owners Act. While you can get a better tenant in your home by asking for last month`s rent, it can be harder for you to find a tenant with the right means, so your property is empty longer than you want. If the deposit is considered a rent from last month, that is all the landlord can use it for. This money cannot be used to pay for the damage caused by the tenant or to clean the apartment after the tenant moves. If the landlord only asks for a “last month`s rent” deposit, then that landlord has taken the financial flexibility of himself to pay for repairs and services normally required by normal wear and tear. Such a share must now be paid from the owner`s pocket. The only two alternatives would be to make it legal, to obtain the first and last month of rental in advance or to amend the 2-month security deposit law, which currently requires the lessor to return one month after the first year – then to pay interest to the tenant to last the two months as long as the lease is maintained.