Tenant: “Where Is My Security Deposit, I need it NOW!”
Security deposit refunds shouldn’t be rushed, and last summer reminded me exactly why.
Because last summer I had a tenant whose lease had ended on a Thursday, and the very next morning on Friday, he texted me to make sure his deposit was being mailed that very day. 🤔
Sometimes you just have to laugh.
He was well aware that landlords in Indiana have 45 days to return a deposit, because I had made that very clear in him move-out instructions. Yet somehow, he was still frustrated that I wasn’t cutting a check within 24 hours of him moving out.
This has actually happened to me several times over the years. I even had a tenant’s dad call me once (yes, a grown adult parent, yelling on behalf of his grown adult child) demanding that I mail the deposit check the very same day the tenant moved out, because – “You need to help them out!”
I blocked that parent’s number. Not dealing with that drama.
Sometimes people learn the hard way that “No.” is a complete sentence.
For the record: I always wait most of the 45 days. I take my time because that’s the smart way to do it, and I don’t let anyone rush me. And that deposit check is not getting mailed until I see that final sewer bill paid in full.
If the tenant doesn’t pay their own sewer bill, then I will gladly pay the utility company with their security deposit. Yes, the water company absolutely can and WILL put a sewer lien on your property if the bill isn’t paid. It’s happened to me twice with inherited tenants who trashed the house and then skipped out on their final sewer payment. I had to pay that bill out of my own pocket – twice. I paid it right before they were going to file the lien, just in case the tenant decided to pay first.
Why You Should Never Return a Deposit Too Fast
Landlords should not rush a security deposit refund. I wait close to the full 45 days for a reason. Several reasons, actually:
- You need time for maintenance (even if that’s you!) to do their due diligence.
- You need to make sure all bills are paid that could be charged to you as the landlord.
- You need to make sure there aren’t any bounced payments.
- You need time to see if the new tenant reports anything the old one left behind. Like unreported cockroaches.
- And the city can take their sweet time sending final utility bills.
For example: I once found six cockroach bait traps in a kitchen after a move-out. Then, a few days into the new lease, the brand new tenant reported cockroaches. The previous tenant got the honor of paying for the exterminator out of their deposit because they were responsible for bugs after the first 14 days of their tenancy in my lease. And they had never said a single word about roaches the entire time they lived there. Probably best not to leave cockroach traps all over your kitchen for your landlord to find after you move out, kind of makes it obvious you had a cockroach problem.
If I had returned the deposit too soon, I would’ve paid that $150 exterminator bill myself. No thanks.
Bonus Summer Drama: Pools and Trampolines 🙃
While all this was going on, another tenant texted the same day to ask if they could put:
- a trampoline
- and a small pool
…in the backyard.
He was sadly disappointed by reality.
Yes, I make tenants sign liability waivers and my lease covers everything, but it doesn’t matter if my insurance company does a drive-by inspection (which they do every year) and sees a pool or trampoline. They will drop me. They don’t care if I had the tenant sign a release about pool and trampolines.
So it’s very simple: No pools. No trampolines. It’s right in the lease.
Happy memories from last summer. Property management is great. 😂
Related: Why Waiting for the Right Tenant Pays Off – Even at a Cost
Disclosure: This post contains Amazon affiliate links. If you purchase through them, I may earn a small commission at no extra cost to you.
