Requesting repayment of the security deposit at the time the keys are handed over

Avoiding Security Deposit Disputes

The best way to avoid security deposit disputes is two-fold and both parts are steeped in housing law. The first is to know the rights and laws surrounding a rental agreement between landlord and tenant. The second is to ensure there is documentation – not only of the dispute but from the moment the tenant first takes over the property, even prior to signing on the dotted line.

Practices Surrounding the Repayment of the Security Deposit

A security deposit is, in some places, a formality and, in others, a given. Regardless of the amount, the repayment of the security deposit at the time of key transfer is usually the best practice. These deposits are usually meant as an assurance that the tenant will keep the residential property in the same condition. So repayment of the security deposit depends on whether the tenant will clean on close or not. Sometimes, there is no repayment of the security deposit because the amount is the last month’s rent. This is true as long as the landlord specifically says so in the agreement. There are usually limits placed on the amount of deposit that can be reasonably required.

What to Do in Case of a Dispute

In case of a dispute, repayment of the security deposit can be held. In extreme cases, disputes may go to a small claims court. After a tenant moves out, the landlord has a certain amount of time to give the tenant the security deposit back. It can only be reasonably withheld if there is caused to keep part or the full amount to account for property damage and repairs. In this case, the landlord must mail copies of all receipts to the tenant in order to legally justify the withholding. Disputes require the tenant to write a letter explaining why he or she believes the amount to be wrong and the landlord should keep this as a copy.

Tenants, listen up. There are tenant responsibilities that, if followed, can help mitigate security deposit disputes. Tenants should take notes and photos of the original condition of the residential property, especially of property damage. Perform a walk-through with a checklist. Disputes can also arise when there is an intent to move out early, so make sure to go back to the contract to see the terms regarding finding a sub-lessee.