Because some tenants will just stop paying and refuse to leave. Some will trash the place and sell everything they can pry off and either disappear or just move on. Trying to go after them is a long legal battle and the end result can be that they have no money and you’ll get nothing.
Security deposits are security deposits. 12 months sounds crazy though. That really is enough for a downpayment in many places.
Because some tenants will just stop paying and refuse to leave. Some will trash the place and sell everything they can pry off and either disappear or just move on. Trying to go after them is a long legal battle and the end result can be that they have no money and you’ll get nothing.
Security deposits are security deposits. 12 months sounds crazy though. That really is enough for a downpayment in many places.