Security Deposit processing continually challenges property managers across the country. In theory, this should be one of the easier things that property managers are required to do. The tenant provides management with a security deposit that will be held during the life of the tenancy. When the tenant moves out, the apartment or home is inspected, damages assessed, and a written statement provided to the former tenant along with the security deposit they are owed. This all must be done within a certain amount of days, depending on where you live. For instance, Arizona must provide former tenants with their refund or explanation of charges within 14 business days. Hawaii residents must also receive a refund or explanation of charges within 14 days. Property managers in Minnesota have 3 weeks to get a refund or statement to former residents, while Arkansas residents will have to wait 60 days to receive their deposit or explanation of charges.
While each state requirement varies, property managers and staff should be aware of what the law is for their state and process security deposit refunds and statement accordingly.
Why do security deposits pose such a problem for so many management companies? The reason is two-fold: lack of proper documentation during the move-in process, and lack of knowledge about the state statutes and what documentation former tenants must receive and when they must receive it by. CONTINUE READING...
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