When a tenant ends a leasing contract and moves out of the apartment, the security deposit he or she gave to the landlord at the beginning of his or her tenancy must be returned to him or her, if there’s no reason for withholding it.

What is a security deposit?

A security deposit is an amount of money that a tenant gives a landlord for safekeeping. It serves as collateral that would assure the landlord that the tenant will not cause damage to the property and they will pay rent throughout their entire tenancy. The deposit will be fully returned to the tenant at the end of his tenancy, unless deductions will be required due to unpaid rent or cost of repair.

However, it would be problematic for the landlord if the security deposit will not be enough to cover unpaid rent or repairs after the tenant moves out.

Related article: Security Deposit Policies Every Landlord in Massachusetts Must Know

If this happens, it can lead to a lot of property management stress. You might have to file a complaint in a small claims court, and it can be time-consuming and could cost you more money.

This is why before it even reaches that point, you must do everything to prevent it from happening. Here are a few things you can do:

1. Inspect your properties regularly.

Inspecting a tenant’s property once in a while is a common practice for every landlord. The inspection is for maintenance purposes. It can be done quarterly, bi-annually, or annually, depending on what’s agreed upon on the leasing contract. It needs to be scheduled because surprise inspections will already be intrusive and disrespectful to your tenant’s privacy.

If you find even the smallest damage during the inspection, it’s best to immediately nip it in the bud. Delaying repairs might lead to bigger damage in the future.

It is also important to have an organized inspection plan; a checklist of everything you need to inspect when conducting the evaluation. Make sure you check every nook and cranny because some damages usually start small in those hidden corners.

Also review the photographs you took of the unit before it was occupied so that it’s easier for you to notice if there are changes that might’ve affected the original condition of the unit.

2. A month before a tenant moves out, schedule an inspection.

It’s harder to go after tenants if you see the damage after they have already moved out. Finding damages early and giving your tenant a month to fix it will prevent you from needing to get in conflict with your tenant should you need to deduct from the security deposit. The tenant, on the other hand, will be motivated to fix it so that he can get his security deposit back. It will benefit both parties.

3. Find good tenants.

It’s best to do it right from the very beginning. Finding responsible and financially stable tenants in the first place will greatly increase the chances of a trouble-free tenancy and less conflict at the end.

Let’s say the listing you posted in Padleads.com caught the attention of dozens of applicants, you can start narrowing down applicants with just a few initial questions. Since they can directly message you, it’s easier to get the basic information you’ll need to know if they qualify for the tenancy.

Once you have the strongest applicants, start a more detailed screening process by checking their financial stability and credit history so that you’ll know if they can afford to pay rent on time.