Security Deposit

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jimeve
Posted
Posted

 Just need some advice on renting out a fully furnished house. I had Filipina viewing my guest house she liked it and wanted to rent it for one month but didn't want to pay the security deposit of one month which she would have got back a full refund if no damage was done.

There is a lot of expensive stuff in there ie smart tv, and brand new aircon in both rooms and more. Am I wrong to ask for a security deposit?

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Tommy T.
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Posted (edited)
20 minutes ago, jimeve said:

 Just need some advice on renting out a fully furnished house. I had Filipina viewing my guest house she liked it and wanted to rent it for one month but didn't want to pay the security deposit of one month which she would have got back a full refund if no damage was done.

There is a lot of expensive stuff in there ie smart tv, and brand new aircon in both rooms and more. Am I wrong to ask for a security deposit?

You should definitely ask for and receive a security deposit. And you should get copies of ID's too. There are many cheapskates here that L has had to deal with in her apartments that she rents out. They don't have down payment... or not until next week and so on and so forth... There have been some instances where the damage done exceeded the deposit... Please be careful!

You are better off not renting than renting to someone who will trash the place or not pay or become a hassle in any way...

Also, have an attorney assist you to draw up or alter a boiler plate rental agreement, make sure the renter reads it and signs it - including initialing each item that is really important, like no smoking, no noise, no pets, proper rubbish disposal...

Consider to also take photos of the place showing the items you mentioned to document that they were there when somebody moved in and that they were in good condition...

Edited by Tommy T.
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Marvin Boggs
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We deal with security deposits on business leases, and find filipinos have a different view of the deposit than we are used to.  Normally they will expect it to be 'consumable', i.e. they will just skip the last payment of the term expecting us to keep the deposit.  Explaining that it is used to cover damage is not easy.  Maybe they see it as a way to be cheated. 

You could try not calling it a 'deposit'.  Maybe quote a price of X for the monthly rate, with x/2 refund for no damage.  

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BrettGC
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Short term rentals such as a month or less it's not normally done but if it makes you feel more comfortable go for it.  Having said that it is normal to take a credit card reading (probably not practical in this instance) to cover an damage/loss.  You have to remember the short and long term markets operate very differently.  Based on your description of the situation I'd insist on a deposit of some sort.  If she can't produce it she doesn't rent. 

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Tommy T.
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An add on thought, Jim...

In USA I rented out a yacht at one point. It was dashed onto rocks due to inattention of the renter. The same renter left cigarette burns on the "no smoking" vessel, and over filled the diesel tanks over the lovely teak decking.

I rented out our house in USA several years later... Some people treated it with care, others trashed it.

So the lesson I learned is to not even rent out a place if it has special meaning to you or you consider to return to live in it or use it. Renters everywhere seem to not take the same care of things as you or I or most owners will... Yes, that is a generalization, but that has been my observation, not only with my possessions but with others' too... Again... Be careful...

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jimeve
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Posted
3 minutes ago, Tommy T. said:

An add on thought, Jim...

In USA I rented out a yacht at one point. It was dashed onto rocks due to inattention of the renter. The same renter left cigarette burns on the "no smoking" vessel, and over filled the diesel tanks over the lovely teak decking.

I rented out our house in USA several years later... Some people treated it with care, others trashed it.

So the lesson I learned is to not even rent out a place if it has special meaning to you or you consider to return to live in it or use it. Renters everywhere seem to not take the same care of things as you or I or most owners will... Yes, that is a generalization, but that has been my observation, not only with my possessions but with others' too... Again... Be careful...

Last renter I had moved out 3 months ago, He was in for 16 months, always paid on time, no problems with him paying a deposit, which he got back. Foreigner btw.

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gery0x
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Just now, jimeve said:

no problems with him paying a deposit, which he got back. Foreigner btw.

No strings attached... :whistling:

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Tommy T.
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Posted
1 minute ago, jimeve said:

Last renter I had moved out 3 months ago, He was in for 16 months, always paid on time, no problems with him paying a deposit, which he got back. Foreigner btw.

That's way cool... L has a renter who has been there for a few years - always pays her rent ahead of time. She reports anything that seems amiss regarding noise, leaks...anything. There are some real gems out there.

She had two renters who she moved out a few months ago. Apparently they did not know how to clean toilets or to keep the place clean. Hmmm... they also seemed to never be able to pay their rent on time or pay their water or electric bills on time. They also smoked in the "no smoking" apartments and were too cheap to pay 15 pesos per small garbage bag to be picked up and just tossed it over the fence... Both of them just ran out their rent advance and left the deposit. L took a loss on one (broken door hardware, damage to walls) and broke even on the other.

So there's the good, the bad and the ugly...

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