You can have the best tenant background check procedures in the world and still miss red flags. Even the smartest landlord can be fooled by fake information.
That's why security deposits exist. They're another form of insurance against the problems bad tenants cause.
Read on to learn everything landlords need to know about security deposits in Oklahoma.
Security Deposit Limits
You may be wondering, how much is a security deposit in Oklahoma? There is no legal limit based on landlord-tenant law. The general practice is one to two month's rent.
You're also allowed to charge a pet deposit to cover pet damage. This is standard unless the animal is a service dog or emotional support animal for tenants with disabilities.
Be careful about the total amount. Setting it too high could discourage potential renters. Set it too low and you could lose rent or be on the hook for maintenance beyond your daily landlord responsibilities.
Storing Security Deposits
Oklahoma law regulates how you can store the money from security deposits.
You can't mix them with your personal finances or use them for personal expenses. Store them in an escrow account at a federal bank or financial institution.
Failure to properly store or misuse security deposits can come with fines of twice the deposit amount or even jail time.
Inspections
Move-in and move-out inspections aren't required but are recommended and within basic landlord rights.
They help you compare the property's condition before and after the tenant arrives. This gives you a visual way to see if they caused any deductible damages.
Deductions
You can deduct money from the security deposit after the tenant leaves due to:
- Unpaid rent
- Damages exceeding normal wear and tear
- Unpaid utilities
- Other charges in the lease agreement
There's no limit to how many deductions you can take. Give the tenant an itemized list of each one.
If the cost of the deductions exceeds the original security deposit amount, you can seek additional damages.
Returning the Deposit
Landlords have a limit on how long they can wait to give tenants their money back. They must return the security deposit minus any deductions within 45 days after they move out.
Not doing so is a violation of tenant rights. They can send a written notice within six months. The landlord must respond to it within 45 days. If they don't, the case goes to court for mediation or a lawsuit.
Change of Ownership
There may be situations where a rental property goes through a change of ownership. There may be a sale or foreclosure.
The previous owner may transfer all security deposits to the new owner. You can also return all the security deposits to all previous tenants, minus any deductions.
Who Can I Trust to Manage My Security Deposits?
Security deposits are like a shield protecting your property, but you need to know how to use them. That means understanding essential aspects such as storage, deductions, and returns.
PMI OkCity Local brings property management expertise to your doorstep. Our goal is to provide worry-free management that lets investors enjoy their lives.
Our service is personal, adaptive, and innovative. Get a free rental analysis to see how we can increase your profitability today.
