A property rental security deposit against damage is a standard part of all housing rental agreements. The purpose of the security deposit is to protect a MN landlord from loss in the event the tenant does not take proper care of the property. Most tenants/renters sometimes don’t even think about it when they sign a new lease, assuming they will get their entire deposit back when they move out.
So, it often comes as a surprise when the refund amount is lower than what they paid when they signed the agreement. Many renters are surprised to find out what the landlord can deduct from their deposit. Here are some common items that the landlord can charge to renters when they leave:
• Non-Payment of Rent – This should seem obvious; if the tenant leaves before the lease is up or simply owes back rent, the landlord can deduct or keep the deposit to compensate. • Unpaid Utilities – Utility companies will hold the landlord responsible for unpaid bills, so if the water or electric bill has been unpaid, they will deduct this from the security deposit. • Unusual Cleaning – While normal wear and tear are not deductible, when a landlord has to clean the property after the tenant has moved out can be charged to the renter. • Damage – This also should be obvious. This was the main purpose of the deposit. • Trash and Other Items Left Behind – Renters should think twice about leaving that old patio furniture behind. Any cost to remove and dispose of anything left in the property can be charged against the deposit.
Finally, breaking the lease for any reason could put your deposit at risk. Renters need to educate themselves about the risks to their deposit and read the lease carefully for any specific terms included by the landlord. This can help renters avoid the shock of a smaller-than-expected refund check.
It’s never too late to begin investing in real estate…..it’s never too early either. Real estate offers a solid investment opportunity which can provide not only an income stream but long term value appreciation as well. Regardless of the ups and downs of the market, people will always need housing, so real estate will remain a good way to create wealth.
By understanding some of the basics of real estate investing, you can begin to create your own plan. Here are 5 tips for first time real estate investors.
1. Use Leverage – . Learn about options other than your own savings for these costs.
2. Budget for the Unexpected – Have a fund available to draw on for the unexpected. Even the most carefully planned project can have unexpected costs.
3. Invest for the Long Term – Real estate investing should not be viewed as a “get rich quick” scheme.
4. Don’t Over Extend – After evaluating the risk, be honest about your ability to handle the negative possibilities the opportunity could present.
5. Be Patient – Wait for the right opportunity.
Real estate offers solid investment opportunities. A first time investor can realize profit and positive cash flow with careful planning and research.
The Real Estate in the Twin Cities offers a solid investment opportunity that can provide not only an income stream, but long-term value appreciation as well. It’s never too late to begin investing in real estate. Regardless of the ups and downs of the market, people will always need housing, so real estate will remain a good way to create wealth.
By understanding some of the basics of real estate investing, you can begin to create a successful investment plan.
• Start Now – Every market offers opportunities for buyers; there is no perfect time to get started.
• Understand the Risks – Before investing, you should be certain that you can hold the property until conditions are right to sell.
• Do Your Homework – Know the market and understand the trends which can affect your purchase and ownership.
• Invest for the Long-Term – Real estate investing should not be viewed as a “get rich quick” scheme. While you might find an opportunity to have a quick flip, most real estate equity is realized over years, not months.
• Understand your Expected Cash Flow – In simple terms, cash flow is what is left over after all expenses are paid. For a rental property, expenses could include mortgage, interest, maintenance, insurance, utilities, rental agents, and more.
• Budget for the Unexpected – Even the most carefully planned project can have unexpected costs.
Have a back-up plan to meet these costs. Real estate can offer solid investment opportunities. Even a first-time investor can realize profit and positive cash flow with careful planning and research. Start building your real estate portfolio now; a real estate purchase could provide a low-risk addition to your other investments for both income and asset value growth.