Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

Rare Cases When a Deposit Actually Makes Sense

3 Mar 2026 · 1 min

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A landlord might charge a security deposit for three specific situations: tenants with poor credit or eviction history, those who refuse renters insurance, or those storing high-value property like boats. Otherwise, skip the deposit entirely.

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There's a few rare exceptions where deposit might be warranted though. While we preach simplicity, those rare cases when charging deposit makes sense, or you should consider charging deposit for high-risk tenant, maybe someone with bad credit history. If, if you're in the business of pulling their credit and you happen to know it, or a history of evictions, you might also consider if a tenant refuses insurance coverage, letting the deposit act as a small buffer for potential damages. And then finally, if they're storing high-value items like boats or expensive equipment, a deposit could increase your protection there. But remember the core principle, most of the time, don't charge deposits.