As a Salt Lake City landlord, security deposits are probably not at the top of your agenda. Keeping tenants in place, maintaining the property, ensuring good relations, and securing strong returns on your investment are always going to come first.
However, there is no shortage of local landlords having to contend with their security deposit rules right now. After years of breakneck growth, Salt Lake City's population is once again dipping, with people leaving town and the rental market softening as a result.
You might have to figure out how, when, and if you need to return a deposit. To ensure clarity, efficiency, and certainty, here's what you need to know about security deposits in SLC.
How to Handle Security Deposits in SLC
Handling tenant deposits is not only a matter of personal preference. It's also a compliance matter.
The purpose of a deposit is so that the landlord can cover any damages, lease violations, or unpaid rent at the end of a tenancy. There is no statutory limit in Utah to what you can charge as a deposit, but 1-2 months' rent is the norm.
Utah landlords do not need to hold the deposit in a separate, untouchable account during the tenancy period. Regardless of what Salt Lake City rental laws have to say about this, it is highly recommended that you keep your deposit in a separate account simply for the sake of good financial management.
One thing you absolutely do need to do is provide your tenants with a receipt of the security deposit. This should detail the amount paid, the date it was paid, and any conditions regarding the use of the deposit.
Returning the Right Way
Utah law mandates that you return the security deposit, or any remaining balance after deductions, within 30 days of the tenant moving out.
You must provide an itemized statement of all deductions made. Failure to comply can result in penalties, including paying the tenant the full deposit, plus potential damages.
As a landlord, you can deduct from the security deposit for various reasons, including:
- Unpaid rent
- Damage to the property beyond normal wear and tear
- Cleaning costs if the property is left excessively dirty
- Any lease violations that result in financial loss
Ensure you provide a detailed list of allowable deductions in your lease agreement. This transparency helps avoid disputes at the end of the tenancy.
Always Inspect Beforehand
To make the process smoother, conduct a thorough move-out inspection. Schedule this inspection with your tenant to ensure transparency.
During the inspection, compare the current condition of the property with the move-in condition documented in the initial inspection report. Take photos and notes of any damages or issues.
Our Local Team Can Help You Optimize Your Investment
Security deposits might seem straightforward, but they can become a legal, financial, and reputational minefield when handled incorrectly.
With the right documentation, clarity, and financial management, you can ensure your deposits secure your investment and keep your current and future tenants happy. For this, we can help.
At Envy Property Management Salt Lake City, we offer full-service, professional outsourced admin for local landlords to help them get the most from their investment. Reach out to our team to find out about our service offering today.
