Landlord Deposit

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 What Is a Landlord Deposit?

The landlord deposit is a sum that a landlord can collect from a tenant if the rental property needs to be repaired or cleaned when the tenant moves out. A landlord’s deposit is sometimes called a “damage deposit” or a “security deposit.” It is generally collected along with the first month’s rent at the beginning of the lease.

Every state allows landlords to collect a security deposit when a tenant moves into a property. The purpose of security deposits is to ensure that a tenant pays rent on time and maintains the property.

The amount of a security deposit is limited in half of the states. Additionally, a landlord is usually limited in how he can use a security deposit.

A landlord may deduct your security deposit for property damage or other exceptional circumstances. As part of the deposit balance, landlords are usually required to provide itemized accounts for any deductions.

At the End of a Lease, Can I Get My Landlord’s Security Deposit Back?

At the end of the lease, your landlord is generally required to return your security deposit minus any allowable expenses. In some jurisdictions and states, security deposit laws allow the landlord to deduct money from the security deposit for excessive damage and dirtiness. Normal wear and tear cannot be remedied with the deposit.

In most cases, the lease itself will specify the instructions and limitations regarding a damages deposit. Make sure you read your lease carefully before signing it, paying attention to any deposit provisions.

Consider signing a different lease if you’re unsure of how a potential landlord will handle your security deposit.

Damages Deposits: What Can and Cannot Be Deducted?

Deposits can only be used for damage beyond normal wear and tear during a lease. Here are a few examples:

  • A large amount of dirt, mess, mold, mildew, or filth
  • Items, furnishings, fixtures, windows, doors, and locks that are broken
  • Paint that has been damaged or destroyed
  • Tenant-caused holes, breaks, and cracks in walls or ceilings
  • Toilets, drains, sinks, and bathtubs clogged or stopped because of misuse
  • Unapproved additions or remodeling
  • Animals or pets cause destruction or stains
  • Blinds and screens that are missing or broken
  • Negligence or reckless behavior may result in other damages

The following are generally considered to be normal wear and tear. As a result, the landlord cannot use the deposit to repair these items:

  • Carpets, blinds, or curtains that are dirty as a result of normal use
  • Sunlight-faded wallpaper or paint
  • Furniture marks on the carpet
  • Moisture or extreme temperatures can warp windows, window sills, doors, or door frames
  • Dust
  • Wall dents caused by door handles (not holes)
  • Dead batteries in smoke detectors
  • Normal wear on appliances not caused by misuse
  • Normal wear on plumbing or fixtures

As a result, the basic distinction here is whether the damage was caused by normal wear and tear or by neglect or misuse by the tenant.

It is the landlord’s responsibility to make repairs if the damage was caused by normal wear and tear, not the security deposit. The landlord may use a part of the deposit to repair damage caused by the tenant.

What If the Landlord Did Not Return My Damages Deposit?

You may be able to file a lawsuit if your landlord wrongfully withholds your security deposit. Identify the deposit provisions in your lease or contract.

If your landlord returned only a portion of your deposit without explaining the deductions in writing, you might also be able to file a claim.

Your landlord should provide a written account if they use some of your security deposit for repairs. It is a requirement in some states for landlords to provide a receipt for repairs over a certain amount.

Before you move out:

  1. Conduct a walkthrough of the property.
  2. Make a note of any damages or things that need to be repaired.
  3. Consider whether the damage is normal wear and tear or if you contributed to it.

Doing so will give you an estimate of what repairs need to be made before your deposit is deducted.

Can My Landlord Require a Large Security Deposit?

Security deposits are not limited to half of the states. Most states have restrictions on how much your landlord can charge, varying from state to state. As a security deposit, landlords typically require 1 to 2 months’ rent.

Here are some examples:

  • Security deposits are not limited in Florida, Illinois, New York, and Texas
  • If the tenant lacks a waterbed and the unit is unfurnished, California requires two months’ rent
  • In Arizona, one and a half months’ rent is required unless the tenant agrees otherwise
  • Two months’ rent in Massachusetts
  • Rent for one and a half months in New Jersey

Does the Landlord Have Any Defenses?

There are some defenses a landlord may have against a lawsuit for wrongful withholding of a security deposit. Among them are:

  • The security deposit should be kept for a good-faith reason
  • Property damage caused by the tenant
  • Despite not paying rent, the landlord keeps the deposit to cover the remaining balance

Tenants who fail to give a landlord written notice of their intent to sue for the wrongful withholding of their security deposit may have their suit dismissed.

Uses of a Tenant’s Security Deposit

Landlords may keep security deposits for five general reasons. These will vary from state to state, but here are the basics.

A tenant’s security deposit is subject to damage to the property beyond normal wear-and-tear. Examples include:

  • Multiple or large holes in the walls
  • Carpet stains, burns, or holes
  • Negligently damaged appliances, doors, or windows

Examples of normal wear-and-tear that the security deposit can’t cover might include:

  • Faded paint
  • Carpet worn from regular use
  • Dents in walls from door handles

A tenant’s security deposit cannot be used to cover normal cleaning costs associated with turning over a rental property. However, those costs might be reimbursable if a tenant leaves behind excessive trash or furniture that the landlord must pay to remove.

A landlord may keep a tenant’s security deposit if the rent is not paid.

Depending on the lease terms, the landlord can keep all or part of the security deposit if a tenant breaks the lease.

The landlord may deduct security deposits for unpaid utilities or other bills related to the rental unit.

Returning the Security Deposit to the Tenant

Upon meeting the lease terms, the landlord is responsible for returning some or all of the security deposit. The length of time a landlord has to return a tenant’s security deposit varies by state.

A landlord must return a security deposit within 14 business days of the end of a tenancy in some states. In addition, if any deductions have been made from the deposit, the landlord must include an itemized list explaining why each deduction was made and the amount withheld.

Some states require an itemized list but allow 30 days before returning the security deposit.

Landlord Deposit Issues: Do I Need a Lawyer?

Different laws govern landlord deposits in different jurisdictions. State laws may differ on when the landlord must return your damages deposit (anywhere from 15-60 days). If you have any issues with a landlord deposit, you should contact a landlord-tenant lawyer for advice. Your attorney can also represent you if you need to file a lawsuit.

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