If you've decided to invest in a rental property and become a landlord in Topeka, KS, you've made a potentially lucrative decision. The latest data from ZipRecruiter.com shows that landlords in the city earn an average salary of $82,139 yearly. It's the sixth-highest in the state!
However, remember that no matter how high your rental income potential is, it could be on the line if your renters violate their lease agreement. For this reason, requiring security deposits is a must.
The PMI Advisory Group delves into the nuances of managing security deposits, ensuring compliance with rental property guidelines, and deposit protection strategies in this guide, so read on.
1. Understand Security Deposits in Topeka
In Topeka, landlords must adhere to security deposit laws outlined in Kansas Statute 58-2550. The law stipulates that landlords may require security deposits from tenants before they occupy a rental property. At the same time, landlords must adhere to specific guidelines, including:
- Proper collection and management
- Allowed use
- Returns
Since laws change and evolve, one of the most crucial landlord tips Topeka property owners should follow is continuously monitoring local and state regulations.
2. Remember Key Rules
Landlords must understand their obligations when handling deposits made as tenant security in Topeka, KS. Noncompliance can lead to significant financial consequences.
Here are some crucial elements to remember.
Maximum Amount
In Topeka and elsewhere in the state, landlords renting furnished rental units can demand security deposits equivalent to one and a half months' rent. The law also permits charging an additional amount equivalent to half of a month's rent for rental properties that allow pets.
Allowed Use
A tenant can't use their security deposit in place of rental payment during the tenancy except as indicated in the rental agreement.
However, if the tenant leaves or you, the landlord, terminate the tenancy, you can use the security deposit for accrued rent. You can also deduct damages due to the tenant's noncompliance with Kansas Statutes Annotated 58-2555. Here are examples of deductions other than rent:
- Cleaning or repair expenses due to problems that exceed normal wear and tear
- Property damage caused by the tenant
- Other legally allowed charges under the rental agreement's provisions
Written Itemization of Deductions
If you must make deductions from the security deposit, itemize them all. You must then provide the tenant with a written itemization of the deductions.
3. Comply With Security Deposit Return Requirements
When a tenant leaves due to lease expiration or termination, you must immediately determine whether you need to make deductions with a thorough rental property inspection. You must return any unused portion within 14 days of determining the amount to deduct or no more than 30 days after:
- The tenancy's termination
- Delivery of possession
- Demand from the tenant to return the deposit
Know Your Security Deposit Rights and Responsibilities
Every landlord in Topeka, KS, must responsibly handle security deposits and adhere to local laws. Maintaining transparent communication with tenants can also help reduce potential conflicts.
PMI Advisory Group can help you manage your rentals in Topeka, KS, whether for security deposit compliance or rent collection. As part of PMI, a larger franchise that has been perfecting and improving the property management industry for the past twenty years, we're experts in full-service property management solutions.
Reach out today for a free property analysis!
