Tenant Information on Deposits
Most landlords require security deposits from tenants to cover incidental property damage during the tenants leasehold. State laws may provide limits for the amounts landlords can charge for security deposit fees, whether a landlord must place the security deposit into escrow accounts and whether a landlord must return the deposit immediately after the tenancy ends.
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Security Deposit Basics
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State rules determine the procedural guidelines for security deposits. Tenants are not legally responsible to cover normal incidental damage or wear and tear to the property. If the state's laws allow landlords to charge security deposits, then landlords can typically deduct fees for neglect and misuse of property. Landlords can charge security deposits for tenants who install permanent fixtures in addition to keeping the personal fixture after the tenant vacates. As part of a state's real property laws, most tenants cannot reclaim property that has become a permanent fixture. For instance, tenants who install special chandeliers may have to leave the chandelier with the property at vacancy and pay a damage fee for installation.
Walk-Through During Move-In
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Lease provisions and state laws usually require a landlord to conduct an initial walk-through with the tenant before signing the lease. The walk-through allows both parties to observe the property's condition so the tenant will not be held legally accountable for existing damage. Tenants should document and inventory the property's condition to reduce the possibility of any unnecessary deductions.
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Security Deposit Types
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Some states allow landlords to charge non-returnable fees for cleaning after each tenant vacates the rental unit. As a lease requirement, most landlords require tenants to restore the rental to move-in condition when the tenant vacates the premises. This may require tenants to repaint walls, fix any new nail holes, professionally treating carpets by steam cleaning and cleaning the apartment. Landlords may also charge additional non-returnable or returnable security deposit fees for pets.
Deposit Return
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Most states require landlords to return a former tenant's security deposit within a few weeks after the tenancy ends. Failure to return the deposit within the allowable time may result in the landlord's inability to deduct charges from the security deposit. States may require landlords hold the security deposit in escrow accounts that earn interest. In these states, landlords must return any remaining security deposit plus additional interest. Most states require landlords to provide an itemization of charges. These statements should specifically document the specific charge and reasons for the deductions. The remaining deposit and itemization should be mailed to the tenant's legal address within the allowable time frame.
Legal Remedies
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Many states offer tenants recourse through special local government real estate complaint offices. In addition, local general district or circuit courts have jurisdiction to hear landlord and tenant disputes. Court rules and procedures determine whether there is a minimum threshold amount or maximum amount necessary for the court to have jurisdiction over the dispute. Both landlords and tenants may file cases in small claims courts.
Considerations
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Since real estate laws frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.
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References
Resources
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