Return of Security Deposits (Residential Leases)
This information was compiled as of November 7, 2005. This brochure is not intended as a comprehensive analysis. It is solely for reference and is not intended to constitute or operate as a substitute for obtaining legal counsel from a licensed attorney.
Once a residential lease has ended, state law determines when the landlord may retain the security deposit and when he must return it.
What steps should the tenant take to recover his or her security deposit?
A tenant who wants to recover his or her security deposit should:
1) Comply with the lease in all ways, including giving notice to end the lease, if the lease requires notice. Check the terms of the lease.
2) Pay all rent that is due. A tenant should not withhold rent on the grounds that the security deposit is the last month’s rent. (Using the security deposit as the last month’s rent may result in a penalty of three times (3x) the amount wrongly withheld and the landlord’s reasonable attorney’s fees if the landlord must file suit.)
3) Provide your landlord written notice of a forwarding address. (Failing to provide a forwarding address will not result in the tenant losing his security deposit, but it may delay its return.)
What is the landlord’s responsibility to return the security deposit? Is there a deadline?
If the tenant has provided a written statement of his or her forwarding address, the landlord must either 1) return all of the security deposit or 2) provide a written description and itemization for any amounts of the security deposit withheld. The landlord has 30 days from the date the tenant vacates the premises to return the deposit or provide the itemization for any amounts retained.
When can the landlord retain the security deposit?
The landlord can retain all or part of the security deposit to cover:
1) damage caused by the tenant, other than ordinary wear and tear;
2) unpaid rent or other breaches of the lease;
3) cancellation fees or other items agreed to in the lease; and
4) the expenses of finding a replacement tenant if the tenant breached the lease.
What happens if the landlord wrongly retains a security deposit?
A landlord who wrongfully retains all or part of the security deposit or fails to provide a written description and itemization for any amounts withheld may be liable for $100, three times (3x) the amount wrongfully withheld, and the tenant’s reasonable attorney’s fees if the tenant must file suit to recover the security deposit.