Landlord difference between last months rent and security deposit…

You’re a landlord who is about to take your first tenant. You want the tenant to pay first month’s rent and a deposit to cover damage and any unpaid rent should the tenant abruptly leave before the lease expires. Instead of calling that deposit “last month’s rent”, which would force you to pay for any cleaning or repairs at the end of the lease, you should simply call it a security deposit. By doing so, you give yourself flexibility on how to spend the money should the need arise. We recommend that you make the security deposit at least one and a half times the rent so the tenant is not tempted to use the security deposit as last months rent.

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