Do you own a property in Des Moines, Iowa, and are considering renting it out? If so, here's a good enough reason to push through: Landlords in the state's capital city earn an average annual salary of $82,201, per ZipRecruiter.com.
However, if you choose to become a landlord, rent isn't the only amount you must decide on. You must also consider security deposits. While not part of your income, they are essential in protecting it.
Read on, as our team at PMI Central Iowa will explore Des Moines tenant security deposit rules in this guide.
Des Moines Tenant Laws on Maximum Security Deposits
Des Moines rental laws on tenant security deposits follow Iowa landlord regulations, including the state's Uniform Residential Landlord and Tenant Law § 562A.12. Under the law, landlords may require tenants to put down a security deposit. However, the maximum amount should only equal two months' rent.
You can also set lower deposit requirements. Doing so can help attract and retain tenants and encourage them to renew the lease agreement.
What Des Moines Landlords Can Do With Security Deposits
Under the Residential Landlord and Tenant Law, Des Moines landlords can withhold or use part of or the entire security deposit to:
- Restore the dwelling unit if the tenant leaves it damaged
- Remedy a renter's rental payment default
- Recover costs incurred due to a tenant who fails to surrender or vacate the property due to lease non-compliance
- Restore the rental property to its original condition (when the tenancy first began)
You can't use security deposits to address issues that arise from ordinary wear and tear. However, you can use them to cover expenses that arise from severe tenant-caused property damage. In this way, they can help protect your rental income.
For example, suppose a tenant who just left used to live with their pets on your property. After a careful move-out inspection, you discovered severe claw marks on your rental's floors, walls, and doors. You can use part of your renter's security deposit to fix or replace the damaged materials.
Rules for Returning Security Deposits
Per the Iowa Residential Landlord and Tenant Law, landlords must return unused security deposits to tenants within 30 days of the tenancy's termination and receipt of the tenant's new delivery address and instructions. If you must use part of or the entire security deposit, you must also include a written statement detailing the reasons why. If the tenant fails to give instructions on the deposit's return within a year of ending their lease, the security deposit reverts to you.
Let PMI Central Iowa Help Manage Security Deposits
Now you know that you can require security deposits in Des Moines, IA, what you can use them for, and how they help protect your rental income. For these reasons, consider charging them in most situations.
If you'd rather not deal with the complexities of security deposits, PMI Central Iowa can help. Our full-service property management firm can handle them and all your other management responsibilities, including marketing, tenant placement, rent collection, property maintenance, and evictions. We back our services with 21-day, On-Time Rent, Eviction, and Pet Guarantees for your peace of mind.
Contact us today to learn more about our services and get your free property analysis!
