Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
People are desperate to not waste too much money on rent.
You'd be better off charging the market rent, and the going rate for the deposit. That way, you'll attract better tenants.
Someone who is desperate to save money on rent, won't have a huge deposit, unless it''s someone desperate to find a landlord to rent to them because nobody else will. And anyone with a big deposit, who no other LL will rent to, is going to be trouble. Drugs come to mind...
Desperate tenants = evictions.
If you price your room way under market, good tenants will be wary. And if you ask for a huge deposit, good tenants will think it's some kind of scam.
I think most people would be very nervous handing over that much of a deposit to a "non professional landlord".
And, as others have said, if they have $1600 on cash on hand, they're more likely to get a studio or a small 1 bedroom apartment. Sure, people downsize to save money, but someone who could get a cashier's check for $1600 on short notice apparently has some savings already.
You can ask whatever you want, I suppose, and may find someone who is fine with your terms. Anything is possible.
From a renter's POV, I'd have to be seriously hard core desperate to hand that kind of money over to a stranger AND be expected to live in someone's home with them. Desperate as in, no one else would rent to me, everything else was absolutely unaffordable, etc.
Last edited by Sally_Sparrow; 05-22-2013 at 04:33 PM..
Ms Christina, I'm so glad you posted this link. I checked CA for fun, and I had forgotten that you can charge 3x monthly rent for deposit if the unit is furnished. I've always rented unfurnished units. Thanks! Great link!
I would also mention (along with checking maximum deposit amounts in your state) that you should make sure it's even legal to rent out a single room in a single-family home. Some states do not allow that practice.
Truthfully, if I were looking for somewhere to rent, I would be leery of the high deposit you are asking for. It would make me wonder (as a tenant) why you are needing so much money from me. I would wonder if you are behind on your mortgage or in some other financial troubles...which would make me not rent from you.
The differences in money (renting from you for 400 vs. renting a 1 bdrm for 600) is minimal imho and not worth the potential risk and initial expense.
I already knew that I can legally require any amount of deposit. Check the link: almost half of the states have no maximum security deposit.
I am looking for a renter who can stake a refundable deposit on his (or her) responsibility. Could be a recent college grad or even an underemployed/unemployed person with savings. I've read several thread on C-D saying people are turned away from renting due to not meeting income guidelines (but they are thrifty and wouldn't need 3x rent to survive IRL). A $1,600 deposit is a way to overcome that obstacle.
My OP does not say I will verify income or employment references. Because I will not. They just pay the $1600 deposit and first month's pro-rated rent, and then can move-in (pending personal reference and criminal check).
Quote:
Originally Posted by Sabinerose
The differences in money (renting from you for 400 vs. renting a 1 bdrm for 600) is minimal imho and not worth the potential risk and initial expense.
In return for the high refundable deposit, I am offering a good-sized room and use of premises for about $200 less rent per month than the market and I'm including FREE basic utilities. Many prospective renters will move on somewhere else. Their choice. However, all it takes is one renter for me. I'm not trying to maximize rental income; and I would gladly enjoy the whole place to myself if no one takes me up on my offer. But I think someone will. VVV
Quote:
Originally Posted by Sally_Sparrow
You can ask whatever you want, I suppose, and may find someone who is fine with your terms. Anything is possible.
1) You have little to no knowledge of what it takes to be a landlord.
2) Because of #1, you have no business being a landlord
3) Anyone who would rent under those terms is crazy, or stupid, or both
4) Good luck with that.
It's been almost 20 years since I've rented but I'm still in the industry....is first, last, and MAYBE an additional smaller deposit (like, maybe for pets) the norm?
I have a rental house and I do first and last. Have never heard of requiring three months rent plus $400 cleaning deposit, that seems crazy.
But the OP hasn't shared where they live so perhaps that's normal there.
I assure you if I had that much cash on hand I'd be buying and not looking at shared rentals....
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
