Security deposit questions are quite frequent, and it can become difficult for property owners to resolve these issues if they don’t know the law. Hiring a Milwaukee property manager is a better option because they know the law and follow specific steps to avoid security deposit problems. Here’s more about it:
They Know Your State’s Laws
This is probably the biggest reason that a property owner should work with a property manager when renting out a property. A property manager knows the law in Wisconsin – they know how much they need to collect, how quickly it should go into the bank, what reports are required and so on. A property manager knows that security deposits are controlled by statute and require nondiscriminatory treatment. Therefore, they will never charge more just because a family has children, for example.
They Don’t Undercharge
Sometimes a property owner is tempted to charge less than they are entitled to charge to make their properties more attractive to tenants. A professional knows how risky this can be. Charging a tenant according to the law will help weed out financially unstable candidates and it serves as a hedge against rent default. Therefore, a professional manager never undercharges, and they will get you a quality tenant because they have many contacts and resources.
They Keep a Record
The move-out inspection and security deposit deductions can sometimes lead to a hostile situation. It is vital to document the property’s condition the moment you let a tenant move in and then compare it to when a tenant moves out. A property owner may lack the experience and skills needed to handle the move out inspection and therefore, it is better to let a professional property manager handle it on your behalf. They will get it on video, take pictures and prepare detailed notes about the current condition of the property.
Besides incorporating video documentation into the move-in process, a professional property manager can use other methods to avoid any deposit disputes. For instance, they will be quick to establish trust accounts for whatever deposit they have received – they inform the bank that the account is for ‘escrow’ funds to avoid forfeiture of those funds.
It is difficult for a property owner with little legal expertise to handle banking requirements. Many people take security deposits as pre-sales earnest money, which is not the correct way to handle the funds. A property manager knows it’s not a down payment and that different rules apply in case of opening an account for security deposits.
Overall, it makes great sense to work with a property manager in Milwaukee to avoid facing issues related to security deposits. Just make sure the property manager discloses their procedures and policies on handling security deposits and always keeps you in the loop.
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