Layton has a smaller-than-average renter population, with just over 70% of all housing falling into the owner-occupied category. This can make it tough to attract new tenants, even with an appealing property.
These days, there are many ways that applicants can learn about your property management style. Previous tenants can leave reviews and share stories online. If your reputation is less than positive, you may face a high vacancy rate.
One thing all applicants will want to know about is how you handle security deposits. Read on for our guide to Layton security deposits and how to use them the right way.
Setting Rates for Security Deposits
Some states impose restrictions on security deposit amounts, but Utah is not one of them. Layton City also does not have any specific laws pertaining to security deposits or how much you can charge. That said, you shouldn't go overboard when setting security deposit rates.
Most tenants expect to pay a security deposit that is equal to one month's rent. Higher-income tenants may be willing to pay a security deposit that is equal to two months' rent. Anything over this puts an unreasonable financial burden on your tenants and may outprice a large percentage of applicants.
Returning Security Deposits
Utah's limited security deposit laws do specify the timeline property owners need to follow when returning a security deposit. You have 30 days from the time a tenant vacates the property to deliver their security deposit to their last known address.
In an ideal situation for both you and your tenants, you'll return security deposits in full. Returning a security deposit means that your tenant took good care of your property, leaving behind no more than reasonable wear and tear. If you charge pet fees, make sure your lease includes clear language about whether or not that fee is refundable.
When to Claim a Security Deposit
When can you claim a security deposit? A tenant's security deposit may be used to cover the cost of unpaid rent. You can also claim all or some of their security deposit to cover the cost of unreasonable damage, like broken windows or badly stained carpets.
You should always keep clear records of all accounts, including separate accounts that hold security deposits. Once again, you have 30 days to alert your tenant that you are keeping all or some of their security deposit. Include a clear breakdown of the costs you are covering and return any unclaimed money along with the notice.
Boost Your Layton, Utah Property With PMI
Layton is a city with far more homeowners than renters, making it difficult for rental property owners to avoid high vacancy rates. PMI is here to offer industry tips and tricks, including best practices for security deposits. Do you need more than just landlord advice?
PMI has the expertise you need to navigate the Layton rental market and Utah laws. We offer both customizable and full-service property management, covering everything from property marketing to tenant screening to maintenance. Let us know how we can help today.