One of the first and most important steps you’ll take with a new tenant is collecting their security deposit. This payment serves to finalize the lease and protect you and your property against damages caused by your tenant.
Many states have strict laws governing how to handle security deposit funds. Proving you’ve followed the rules can be vitally important in case of a dispute, and a detailed receipt can provide useful evidence of your good conduct.
Keep reading to find out when and how to provide a receipt for security deposit, and get a free printable security deposit receipt form to simplify the process.
What is a security deposit receipt?
A security deposit receipt (sometimes called a rental deposit receipt) is a written record provided by you, the landlord, to a tenant recording the details of the security deposit paid.
While providing a security deposit receipt is only required by law in a few states, it’s always a good idea. Having a proper receipt can protect you in the event of a dispute by showing you acted in good faith when collecting the deposit and followed the applicable laws regarding receipt and handling of the deposit funds.
What to include in a security deposit receipt?
Your security deposit receipt should include all of the transaction details. Include your name and contact information, the tenant’s name and address, the amount of the deposit paid, and information about where and how the deposit is being held.
A security deposit receipt should include:
- Landlord’s name
- Landlord’s address
- Tenant’s name
- Date of receipt
- Property address
- Amount of security deposit
- Name of financial institution
- Address of financial institution
- Landlord’s contact information
- Landlord’s signature
Click here to download your free printable security deposit receipt template.
When to deliver a security deposit receipt?
Ideally, you should provide a receipt of deposit as soon as the money is confirmed to be deposited in your bank account. It’s best to wait until the transaction has cleared, especially if your tenant has paid their deposit by check, to ensure you’re not providing a receipt for money you haven’t actually received.
A more convenient time to deliver a security deposit receipt is when you meet your tenant to perform a move-in inspection and give them their keys. Just keep in mind there may be a legal time limit to provide a receipt, such as in Massachusetts, where a receipt must be provided within 30 days.
Collect security deposits and rent payments with Baselane
Collecting security deposits and rent payments doesn’t have to be difficult. Baselane’s online rent collection automates rent payments, reminders, and late fees, so you can stop chasing tenants for rent and start getting reliable, on-time payments.
