| It does matter what you say and how you say it. Words can work either for you or against you. | Be careful what you call
money you collect from a tenant. Call it the wrong thing and you
could end up holding the short end of the wishbone.
When landlords collect deposits, they are collecting payments to enforce contracts. The tenant is contracting with you to rent the property and keep it in reasonably good condition while it is in his care and safekeeping. If the tenant doesn’t live up to his end of the contract, that is, if he leaves the place a filthy mess, puts holes in the walls, breaks windows, or moves out before the end of his lease, you can keep the deposit, PLUS any additional costs to you as a landlord to make the property or your financial condition, whole. |
| Fees are somewhat different.
One of the ways the word “fee” is defined is a payment for service, admission,
license, etc. If you collect a pet fee, for example, it could well
be construed by a judge as a license for the tenant to have a pet.
If the pet were to do damage in excess of the amount of the fee, it is
a distinct possibility that you would not be able to collect any additional
money to compensate you for damages.
It does matter what you say and how you say it. Words can work either for you or against you. A rule of thumb is that you do not ever collect a fee from a tenant in regard to anything he might do as an occupant of the property; collect a deposit. About the only fee you would want to collect would be a fee for checking the rental application.
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