The security deposit a tenant pays before renting your Charlotte property offers you some peace of mind. It protects you against any unpaid rent or the cost of damage a tenant may leave behind after vacating the home.
However, it doesn’t cover everything.
One of our most unique plans we offer owners at Alarca Realty is a turnover cost protection plan. This is designed to give our clients more protection between tenants. It covers more of the costs than a typical security deposit would cover.
When you’re renting out an investment property, make sure you understand exactly what you can and cannot use the security deposit for. Consider whether an additional protection plan like the one we offer our Charlotte property management clients might make sense.
Charlotte Security Deposits: What is Covered?
A security deposit only covers the damages as narrowly defined by the state Real Estate Commission. It does not cover the general wear and tear that comes with a tenant occupying your home.
When your tenant has moved out, you can deduct from the security deposit any unpaid rent or utility costs. You can also deduct for damage that’s been well-documented. However, you cannot deduct for the normal wear and tear that’s often found after a tenant moves out. Your security deposit does NOT cover things like:
- Carpet cleaning
- Normal house cleaning
- Normal painting that is not a result of damage
- Small repairs around the property
- Lock changes
- Exterior maintenance and landscaping
Any deduction you make from the security deposit needs to be well-documented in order to avoid tenant disputes.
Benefit of Protection Plans
The benefit of a protection plan like the one we provide is that it saves you from the out-of-pocket costs that can quickly accumulate between tenants. Turnovers are expensive, and the more money you can save during this period, the higher your ROI will be.
We have designed a turnover cost protection plan to provide more coverage so more of those repairs are covered. It allows you to save money when one tenant moves out and another is preparing to move in. There are fewer dollars being spent when the property is vacant.
Our plan will cover owners up to the amount of one full month of rent. That money goes towards the costs of any necessary repairs to make the property ready for a new tenant. It will include all the fees for professional cleaning and carpet cleaning. It includes standard painting that might be needed as well.
This doesn’t cost you anything extra as an owner. That’s because our tenants absorb the cost of the protection plan. We offer them a monthly resident benefit plan which includes this in the amount we collect from them.
If you have any questions about security deposits and what they cover, please contact us. If you’d like to hear more about our Charlotte property management services or our turnover protection plan, we’d love to talk with you. Contact our team at Alarca Realty.