A poor understanding of Nevada security deposit laws can lead to disputes with your tenants.
If tenants don't understand their responsibilities, they could leave your property in bad condition. Additionally, if you don't understand the laws regarding returning security deposits, a tenant could take you to court.
As a Reno, Nevada, landlord, this is what you need to know about security deposits:
Maximum Security Deposit Amount
Landlords in Reno are limited to charging more than three times the monthly rent payment for a rental security deposit. If monthly rent payments are $1,000, the maximum security deposit amount allowed by law is $3,000.
Landlords can charge an additional security deposit for pets in a rental property. To comply with the Federal Fair Housing Act, you cannot charge a pet deposit for those with a service or emotional support animal.
All security deposits are refundable under security deposit laws. There are situations where you can deduct all or some of the security deposit to pay for damages or unpaid bills left by the tenant.
Leasing management services can help landlords add provisions in their lease agreements that cover security deposit deductions. This helps avoid disputes with tenants because they'll know what to expect in advance.
Security Deposit Deductions
A landlord can use the security deposit to cover applicable charges once the tenant moves out. Security deposits can be used to cover the following in a rental property:
- Damages beyond normal wear and tear
- Unpaid rent or utilities
- Cleaning costs
Normal wear and tear is common deterioration of a property, such as faded paint or stained bathroom fixtures. These things occur over time from normal use of the property.
Anything beyond normal wear and tear that occurred from misuse or negligence is deductible from security deposits. Destroyed fixtures, stained carpets, holes in the walls, and broken windows are all examples of these damages.
Returning Security Deposits
A landlord has 30 days after the tenant moves out to return the security deposit. If deductions were made, they must send an itemized list of what the security deposit was used for.
If a tenant disputes the itemized list, they must do so within 30 days of receiving the receipt.
Landlords who fail to return security deposits within the allocated timeframe forfeit their right to the security deposit.
Landlords in this situation must provide tenants with the full security deposit amount and legal fees that might be associated with the tenant recovering the deposit in court.
Consider hiring a property management company to help you avoid legal problems.
How Can a Property Manager Help?
Without knowledge of security deposit laws in Reno, landlords could end up in court settling disputes with tenants. A property management company eliminates this risk by carefully following all security deposit laws.
PMI Diversified Properties works on behalf of property managers like you. Our team of real estate experts works to protect your investment and maximize its performance.
We do this by knowing the ins and outs of the local real estate industry, including laws regarding security deposits. Contact us today to discuss your needs and get a tailored plan for a higher ROI.
