Friday, July 18

Real Estate FAQs

Rent and Security Deposits

Security Deposit FAQ

How much security deposit can a landlord charge?
All states allow landlords to collect a security deposit when the tenant moves in; the general purpose is to assure that the tenant pays rent when due and keeps the rental unit in good condition. Half the states limit the amount landlords can charge, usually not more than a month or two worth of rent--the exact amount depends on the state. (For the amount in your state, see State Laws on Security Deposit Limits)

Many states require landlords to put deposits in a separate account and some require landlords to pay tenants the interest on deposits.

What are the rules for returning security deposits?
The rules vary from state to state, but landlords usually have a set amount of time in which to return deposits, usually 14 to 30 days after the tenant moves out - either voluntarily or by eviction. (See Deadlines for Landlords to Itemize and Return Security Deposits.)

Landlords may normally make certain deductions from a tenant's security deposit, provided they do it correctly and for an allowable reason. Many states require landlords to provide a written itemized accounting of deductions for unpaid rent and for repairs for damages that go beyond normal wear and tear, together with payment for any deposit balance.

A tenant may sue a landlord who fails to return his or her deposit when and how required, or who violates other provisions of security deposit laws such as interest requirements; often these lawsuits may be brought in small claims court. If the landlord has intentionally and flagrantly violated the law, in some states, a tenant may recover the entire deposit - sometimes even two or three times this amount - plus attorney fees and other damages.

The rules for the keeping and return of security deposits can be found in your state landlord-tenant statutes.