Have you decided to become a rental property owner and landlord in Rogers, AR? If so, you've made a potentially game-changing decision for your income. Landlord salaries here are among the ten highest in the state, averaging $73,137 yearly, per ZipRecruiter.com.
But to maximize income and minimize losses, you must adhere to laws surrounding security deposits in Rogers, AR. Otherwise, you could face costly tenant turnovers and even legal troubles.
To that end, our team at PMI Heritage put together this guide exploring facts about security deposits. Keep reading to discover tenant rights, landlord responsibilities, and property management tips regarding these "payments."
1. Legal Requirements for Security Deposits
Rogers, AR, follows laws on security deposits outlined by the Arkansas Residential Landlord-Tenant Act. As the Attorney General of Arkansas explains, security deposit laws only apply to landlords who own and operate six or more rental units. If these regulations apply to you, you must:
- Only charge a security deposit equivalent to two months' rent
- Return the full or remaining deposit within 60 days of the tenant leaving
- Make only allowed deductions
- Provide an itemized list of deductions within 60 days of the tenant vacating
2. Proper Documentation Is Key
Maintain thorough documentation and ensure transparency of rental agreements with plain language. Outline your rights and duties as a landlord and those of your tenants (such as their legal and optional maintenance duties).
Moreover, you should:
- Keep all records of receipts
- Conduct and document thorough damage assessments
- Communicate with tenants about the deposit throughout the rental period
- Use a move-in and move-out checklist to reduce misunderstandings
Having evidence of your property's condition can be beneficial if disputes arise. Plus, well-kept and organized records can help simplify accounting tasks for your rental.
3. The Importance of a Written Lease
A written lease agreement is tangible proof that you have the right to make deductions. Ensure the agreements clearly outline all terms related to the deposit, including:
- The exact amount of security deposit you require
- The purpose of the deposit
- The tenant's rights to recover the deposit
- The conditions for the deposit's return
Since a written lease is legally binding, you can protect your rights without violating those of your tenants.
4. Deposit Refund Process
You must return the deposit within 60 days of the tenant leaving, whether or not you intend to make deductions. If you must deduct from the deposit, ensure you do the following:
- Describe each item warranting a deduction (property damage or unpaid rent)
- Note the amount for each item
- Provide photos of the property (before the tenant moved in and after they left)
Want to Simplify Security Deposit and Property Management?
Security deposits can help protect your property and income by providing a financial net for tenant damage or unpaid rent. However, the many legal processes surrounding them can be complex and time-consuming.
Luckily, PMI Heritage's full-service property management experts are ready to help!
Our owner, Manvi Huyen, has always wanted to succeed in real estate investing, so he developed his property portfolio and continues to pursue real estate education. Our principal broker, Krishna Verma, brings over a decade of expertise in real estate investments and property management to our firm. With our team's skills and qualifications, we can help you achieve success with your investments in Rogers, AR.
Reach out today for a free consultation!
