A security deposit is an amount of money paid to a landlord by a tenant to cover any damage or losses to the rental property. It’s usually returned to a tenant at the end of a lease agreement.
Unfortunately, sometimes disputes can arise over security deposits, such as if a landlord refuses to return the deposit to the renter.
If you’re dealing with a security deposit dispute, there are important things to do so that you safeguard your interests and prevent financial losses.
Read the rest of this article to learn about common types of security deposit disputes, how to navigate them, how to prevent them, and when hiring a lawyer can help you.
What are Common Types of Security Deposit Disputes?
Security deposits can result in disagreements between landlords and renters over the following concerns.
- Rental damage. A landlord and tenant might have different ideas of who’s responsible for damage to a rental property, which influences how much of the security deposit amount is returned.
- Deductions. The landlord might use the deposit to cover costs that are not legal.
What are Legal Requirements for Security Deposits?
Before you navigate a dispute, it’s important to know the legal rules surrounding security deposits.
- Laws surrounding security deposits vary in different states, so it’s important to do your research.
- Your landlord can use the security deposit to cover damage to the rental property, but this does not include normal wear and tear.
- In some states, the landlord can use the security deposit to pay for unpaid rent or utility bills.
- Security deposit return dates vary. In some states, it’s 30 days, while in others it’s 45 or 14 days
- In some states, a landlord can charge anything for a security deposit, while others limit the amount to one or two months of rental income.
What Can Landlords Legally Deduct From Security Deposits?
Although state laws vary quite a bit when it comes to security deposits, generally a landlord is allowed to deduct the following costs from tenants’ security deposits:
- Unpaid rent. If monthly rental payments are outstanding, a landlord can withhold the security deposit to cover them.
- Damage that’s not wear and tear. Tenants will have to cover any damage that they (or their guests) have caused during their stay. They are not responsible for general wear and tear, such as faded paintwork or worn carpet in high-traffic areas.
- Cleaning. It’s the tenant's responsibility to ensure the rental property is clean when they move out. However, professional cleaning is usually not included, unless the lease agreement made mention of it.
- Missing fixtures. The landlord can use the security deposit to replace missing property fixtures that are built into the rental property, such as bookshelves.
How Can You Deal with a Security Deposit Dispute?
If you find yourself in a security deposit dispute with your landlord, you should take the following steps.
Refer to Your Lease Agreement
This document will include deposit rules for your specific situation as well as any guidelines regarding specific state rules.
If the agreement is complex or difficult to understand, you can request a contract review by a vetted lawyer on ContractsCounsel, an online legal network.
Simply post a project requesting lease agreement review on the platform and you’ll receive multiple lawyer bids. You can select a lawyer from the bids who is best suited to your requirements, based on their client reviews, years of experience, and fields of expertise.
Ask Your Landlord for Clarity on Deductions
If you’re confused about why your landlord has made certain deductions on the deposit amount, you should request an itemized list. This will provide clarity. Check that the deductions match the security deposit rules in your location.
Gather Evidence to Support Your Case
If your landlord is saying that they won’t return your deposit because of damage to the rental property that you didn’t do, you should gather as much evidence as you can to strengthen your case. This can include referring to move-in photos that show the property’s condition or inspection reports.
Send a Demand Letter
If your landlord is violating the security deposit laws, you can send them a demand letter. This letter includes documents that support your claim, such as a lease copy and citations to security deposit regulations in your state.
Before you or your lawyer draft this letter, make sure that you’ve fulfilled your tenant duties, such as providing notice of termination of the lease and that you’re up to date with all your rent.
How Can a Lawyer Help You With a Security Deposit Dispute?
You should hire a lawyer if you’ve tried to communicate with your landlord but you can’t seem to reach an agreement. They will be able to help you in various ways throughout the dispute process.
Lease Reviewal
Your lawyer will scrutinize your lease agreement, checking for any red flags or violations on the part of your landlord. They’ll ensure that the lease matches your state laws so that you know your rights in the dispute.
Draft Important Documents
If you need to create an agreement between you and your landlord, such as after reaching a settlement, or you want to send them a demand letter, it’s wise to get these drafted by a professional lawyer.
They will ensure the document language is legally sound and no important information is neglected, as this could weaken your position or put you at risk of financial losses.
Negotiate on Your Behalf
Your lawyer will strive to reach an agreement with the landlord so that you save money and time by avoiding going to court. They’ll use their negotiating skills to reach a favorable settlement for you.
Represent You in Court
If your dispute goes to the small claims court or civil court, your lawyer will represent you. They’ll gather evidence to support your position and ensure your rights aren’t abandoned.
Do you need a lawyer for a security deposit dispute?
Consult with a vetted, experienced lawyer on ContractsCounsel. They can help you because they have legal knowledge, credentials, and years of experience in assisting clients with security deposit disputes.
