Do you know your rights? Tenants and landlords have rights when it comes to living on a rental property and owning one. While there are many regulations to know, this guide focuses on security deposits.
Security deposits in Pahrump, NV can protect tenants and landlords from unnecessary disputes. Landlords can use security deposits to mitigate the risks of renting to a bad tenant.
There are laws you need to follow. Keep reading to learn them.
How Much Is a Security Deposit?
Legally, security deposits in Nevada can be equivalent to up to three months of rent. A landlord can decide to charge less but not more than this amount.
Some landlords choose to take a security deposit in the form of a surety bond. Whatever method feels right to you must be clearly stated in the lease agreement.
If a tenant wants to live with a pet, you can legally charge a pet fee equivalent to up to two months of rent.
Be sure to follow federal Fair Housing laws to avoid discriminating against someone who requires a service animal. Certain tenant rights regarding disabilities must be followed.
Using Security Deposits After a Tenant Moves
Once a tenant moves out, you may find they left the property in bad shape. Security deposit rules allow landlords to use the security deposit to cover some damages.
It's common to use all or some of the security deposit to cover:
- Cleaning costs
- Damages beyond normal wear and tear
- Unpaid rent and utilities
Landlord responsibilities include knowing what counts as wear and tear.
Security Deposit Deductions
If the tenant doesn't uphold their obligation to keep the property in good condition, you don't have to return the security deposit. However, you must create an itemized list of deductions.
You have 30 days in Nevada to provide the tenant with the list of deductions and any leftover security deposit funds. Tenants can recover the entire amount if landlords fail to return the funds within the allocated time window.
Are Security Deposits Taxable Income?
Rental deposit laws regarding taxes are upheld by the IRS. While returned security deposits don't count as taxable income, funds kept must be reported.
Security deposits count as income when a tenant breaches the lease agreement. A breach forfeits their right to their security deposit.
Both parties can agree to use the security deposit to pay for the last month of rent. This must be handled before the lease signing. If this is your situation, the income must be reported.
Working With a Pahrump Property Manager
Nevada laws on security deposits may change over time. That's why it's beneficial to work with a Pahrump property manager who keeps up with the latest regulations.
Freedom House Property Management takes care of everything so you don't have to. In addition to collecting security deposits, our services include property marketing, tenant screening, and more.
We put honesty and integrity at the forefront to help you maximize your income. Get a free property management quote now to get started.
