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10 Feb 2025 · 1 min

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Short YouTube video by Steve D Valentine (recorded Feb 10, 2025) offering practical advice on structuring lease and purchase-related deposits. In this excerpt he explains that deposits can be separated between lease and purchase agreements, that he typically does not take a security deposit on leases but does take a non-refundable deposit on purchase contracts, and that absence of a security deposit does not prevent pursuing additional damages/collections if the tenant breaches and the contract is canceled.

Chapters

Keep in mind that on the lease we can separate deposits in different ways. You know, we have a larger non refundable deposit on a purchase contract. In most cases, I don't do one on the lease. It just depends on how you want to operate in that capacity. I always look at it that I don't have a security deposit, but I do have non refundable deposit on the purchase. And if they violate the lease and it cancels the contract. Just because they don't have a security deposit doesn't mean that I can't financially go after them for collections for further damages over and above what they didn't have as a security deposit.