Having a property manager for your Colorado real estate is a great way to protect your investment and keep good tenants. There is a lot to remember and to do when being a landlord, and unless you plan on being completely hands on, a property manager will be much more on top of leasing issues, late night calls and Colorado law.
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If you have good tenants, keeping them is very important, and if you don’t, getting good tenants should be your plan. A property manager will know exactly how to do both. They also would be up to date on issues that could land you in hot water, legally. Things like how to handle security deposits and Colorado law.
A security deposit is money that belongs to your tenant that you hold in anticipation of having to make repairs to the property when they leave. It is NOT your money. It must be held in a separate account, and not with your money. That is called “co-mingling” and will quickly get you in trouble. The security deposit is money paid to you to cover damage or cleaning of rental property. You may not keep it to pay for fixing normal wear and tear to the property. You can keep all or part of the security deposit to cover damage caused by the negligence, carelessness or intentional abuse of the rental property by the tenant.
When your tenant moves out, you must return the security deposit within one month, unless the lease agreement specifies a longer period of time which can be up to 60 days. If you keep any part of the deposit you must provide a written statement listing the exact reasons why, which you must mail to the tenant at their new address, if you know it, or at their last known address.
Most importantly, if you don’t follow the rules above, you will be liable for THREE TIMES the amount of the deposit you keep, along with reasonable attorneys’ fees and court costs. It would then be up to you to prove that you kept the money in accordance with the law.
Let a great Colorado property manager handle it for you, so you don’t run afoul of the rules! Give us a call today! 303-452-5853