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I dont know whether its a normal thing or not, I was told this from someone with multiple units when i started renting out my basement. Both of us had no issues from the tenants thus far.
True it makes the rent higher but i see it as this is your single biggest investment. You cant be letting just any old person stay in it with just a half month of security deposit.
This adds just that extra bit of restriction / convenience and lets the tenant know youre on the ball.
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