With its affordable cost of living, thriving community, and proximity to the majestic Yellowstone National Park, it's no wonder Cody is Wyoming's best place to live, according to website StudyFinds.
So, if you've recently invested in a rental property here, buckle up, as designations like being "the best place to live" will likely attract more potential renters.
Before you get too excited, though, you should learn more about The Equality State's rental security deposits. After all, they play vital roles in protecting your rental income.
The experts here at PMI Yellowstone have shared insights to help you get started, so read on.
Caps on Security Deposits
According to the legal encyclopedia NOLO, Wyoming rental laws don't put a statutory limit on security deposits. In short, landlords in Cody, WY, can decide how much to require. Still, you should avoid using this as a good reason to charge a security deposit equivalent to several months of rent.
Instead, consider following typical tenant security deposit guidelines, which, according to Investopedia, is only one month's rent. By setting fair rents and security deposits, your tenants will likely want to stay long-term.
Legitimate Uses
Landlord regulations in Cody, WY, fall under Wyoming Statutes Title 1. Code of Civil Procedure § 1-21-1201 through 1211. According to legal publication Casetext, Wyo. Stat. § 1-21-1208 allows landlords to use security deposits as payment for:
- Unpaid or accrued rent
- Damages to the rental property that exceed reasonable wear and tear
- Cleaning the property to restore it to the condition at the start of the rental agreement
So, let's say your tenant has left, and you inspect the property they've vacated soon after. Unfortunately, you discover many carpet stains and torn upholstery, which you think your tenant's pets caused. Regardless of who or what may have caused the damage, you can use part of the security deposit to pay for the repairs or replacement of the damaged items.
What if your tenant left the property just a little dusty here and there, and they have no unpaid rent? Then, you must return the security deposit in full.
Returning Security Deposits
Rental property best practices include accurate accounting and recordkeeping. You should also apply these strategies to security deposits, especially if you're not returning them in full.
Per Wyo. Stat. § 1-21-1208, you must inform former tenants in writing why you'll only return a portion of their security deposit. For this, you must provide an itemized list of all the deductions. Giving them copies of cleaning or repair receipts is also a good idea to back your claims up.
Wyo. Stat. § 1-21-1208 also mandates landlords to return the return deposits without deductions within 30 days from the end of the lease or 15 days from the receipt of the tenant's new mailing address, whichever comes later. For deposits with deductions due to property damage, landlords get an extra 30 days.
Protect Your Rental With Reasonable Security Deposits
Now that you know how security deposits in Cody, WY, work, it's time to decide how much yours will be.
Our full-service property management company, PMI Yellowstone, can help. We specialize in all lease-related tasks, from marketing to rent collection and eviction protection. Our team comprises real estate, property management, and cutting-edge technology experts who can help maximize your rental income.
Get in touch with us today to receive your free rental analysis!
