Landlords have a genuine opportunity to make a significant income from rental investment property. Investing in a rental house or apartment unit to lease to tenants can provide an on-going, steady source of income and the landlord will also have the benefit of having property assets that can increase in value over the years. Because the landlord’s income flow is dependent upon the property being maintained and taken care of, it is important for the landlord to use a lease agreement template and include a security deposit in the lease.
What is the Purpose of a Security Deposit?
A security deposit protects the landlord in the effect that if property is damaged in the rental home, the deposit can help to offset the cost of repairing the damage. In addition to this, a security deposit also is a guarantee the landlord receives rent if the tenant leaves the rental agreement without the agreed upon notice. If the tenant skips out and does not pay the last month’s rent, the landlord can keep the security deposit. If the tenant fulfills the lease agreement template, gives proper notice of moving out, and leaves the home in good condition, the landlord refunds the deposit. A lease agreement template can provide a professional contract form to include the amount and conditions of the security deposit.
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