Why are tenant deposits on properties going up every day?

A recent trend is developing in the market for rented homes in the Echo Park area. The owners are asking tenants for considerably higher security deposits. This is even true for SMBs and startups looking for new office space in the neighborhood. A number of young couples and small families, who are moving into the homes located in this quaint and upmarket region, are facing similar challenges.

This security deposit serves the same purpose it has been for the as long as we can remember. The only difference is it is not just the first and the last months’ rent anymore. It is tying up a company’s working capital and a family’s mortgage payments as well.The security deposit is not for just protecting the landlord and his property anymore. It is more about the cost the property owner has had to bear to get the place ready for the new tenants. This includes the cost of renovation, new furnishing, plumbing and everything else the site has gone through before the new tenants move in.

This is more than a month’s salary for most people. Many couples are thinking of moving to more “cost-effective” neighborhoods in the area. However, this is a compromise on the security of the family and their lifestyle.

What can you do to avoid paying exuberant security deposits?

Be smart: do some homework

Since the main reason for a hike in security deposits is the initial investments of the property owners, you should look for homes that have not undergone renovation recently. This does not necessarily mean you should be ready to move into a dump. You should talk to an Echo Park real estate agent before you decide that you have found your dream home. An agent has a better idea about the houses that are already on the market and the houses that are about to go on the market. Talking to an agent will give you the latest information about your viable options in the neighborhood.

The burn-down: get it in writing

We have seen, many proprietors give back at least a portion of the deposit when the tenants “perform well.” This means, if you pay your rent on time, pay your rent in full, keep the place tidy, you have a good chance of getting back a substantial chunk of your money back soon. However, you should not leave this to chance. You should sign a contract that clearly states the terms of the money-return before you move into your new home. These are the performance clauses or the burn-downs. You should get a rep broker who has good reputation and experience. Someone professional should be able to get mitigate the deposit and negotiate a faster return on the deposit. 

Moving into a new home has never been easy. Not only does it entail exposing yourself and your family to a new environment. It also involves a lot of monetary discourses with new landlords and brokers that require with expertise and professionalism. You can find out everything you need to know about moving into a new neighborhood at https://silverlakeblog.com/.