What Do Landlords Need to Know About Security Deposits?

What Do Landlords Need to Know About Security Deposits?

As of September, Nevada saw over 45,000 eviction filings in 2023.

When you own a rental property, you always find ways to counteract poor tenant behavior. The last thing you want to do is go through a long and stressful eviction process, so taking preventative measures to protect your property is the way to go.

Tenant screening and security deposits are the most effective measures landlords have. Keep reading and you'll see how security deposits will give you insurance against property damage and delinquent tenants.

What Are Security Deposits?

A rental security deposit is a form of insurance against a variety of things your tenant might do to cost you money. The most common reasons to request a security deposit cover missed rent payments and property damage.

The tenant will pay you the security deposit at the start of the tenancy, upon which you'll perform a move-in/move-out inspection. At the end of the tenancy, you'll do the same inspection and make note of any new damage that wasn't there before.

You'll then use some or all of the security deposit to cover the cost of repairs, and then give the rest back to the tenant. If there's no damage, you'll return the security deposit in full.

Security Deposit Laws

When asking for a security deposit from your tenant, it's important to understand Nevada's laws on security deposits. In Nevada, your security deposit can be the equivalent of 3 months' rent as a maximum.

Before you jump at the opportunity to ask for thousands of dollars of insurance money from a tenant, remember that this will deter many tenants from applying for your unit. Most landlords will ask for no more than a single month's rent so that they get a wide pool of applicants.

Returning Security Deposits

There are also rules around returning the security deposit. You must return the deposit within 30 days of the end of the tenancy, along with an itemized list of deductions.

Your tenant will then have another 30 days from getting the receipt to object to any of your damage claims. The most common deductions are things like patching holes, broken windows, cleaning costs, and anything else that goes beyond normal wear and tear.

If your tenant has unpaid rent left after you've terminated the tenancy, you can take it from the security deposit as well. It's crucial to keep track of the deductions and their costs so you can be as detailed as possible for your tenant.

How Property Services in Las Vegas Can Help

Dealing with security deposits can sometimes be tricky for a Las Vegas landlord. If you're looking for better ways to deal with tenants and security deposits for your Las Vegas property rental, hiring property management services is a great idea.

At PMI Vegas Properties, we're one of the nation's top full-service property managers. We can help you with everything from tenant screening and rent collection to property maintenance and inspections, so contact us today to learn how we can help boost your investment.