How to Handle Security Deposits

Hawaii Property Management Podcast with Duke Kimhan

If you have an investment property, it’s always a good idea to demand a security deposit from renters before they move in. The purpose of the deposit is so that you have some funds available if damages exceed the repair amounts on the property.

When the tenants move out, we only have 14 days to look at the property and make repairs or refund them the security deposit. If repairs are necessary, we have to give them a written note designating the costs of the repair.

As a rule, the security deposit cannot be used for the last month of rent. You would just be selling yourself short if you allowed a renter to do this.

If you have any further questions, please don’t hesitate to contact me. I look forward to hearing from you!